Is yours a CASH business?
No problem, but if so, there are some important things you need to know. Cash payments must be reported on your annual income tax return. They are also subject to GST/HST. Failure to report cash payments is tax evasion.
For example, if you fail to report all income earned, cash or otherwise, fail to report and remit GST/HST, fail to file T5018 returns for sub-contractors, file as self-employed when you are an employee or claim personal expenditures on your business tax return … there can be serious consequences. You could be subject to heavy fines, lose your assets, go to jail or all of the above
Canada Revenue Agency (CRA) uses a variety of sophisticated tools and tactics to enforce tax compliance, including:
- information from external sources
- co-operation with workers’ compensation boards and other agencies
- business and lifestyle audits
- investigating complaints by citizens
Paying your taxes is the law. Paying your taxes is also simpler than dealing with the consequences. It may feel overwhelming if you have fallen behind, but Mark Feldstein & Associates can help you set the record straight.
You may even qualify for penalty and/or prosecution relief under the CRA’s Voluntary Disclosures Program (VDP). For more information on the VDP contact Mark Feldstein & Associates. We specialize in taxation and accounting for Tax Amnesty.
