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Our Services
What Service We Offer
Tax Disputes & Tax Objections
ParaTax is proud to be a leading CPA firm in Canada, specializing in assistance with the CRA Voluntary Disclosure Program.
We collaborate with Canadian individuals and businesses to balance their personal and professional finances, guiding them through the voluntary disclosure process and offering opportunities and incentives to rectify past errors.
Working directly with ParaTax allows you to bypass the extra legal fees associated with hiring a tax lawyer since a tax expert CPA from our team can provide all the necessary support for a VDP.
With over 10 years of industry experience and expertise, we recognize that each client’s financial situation is unique. Our accounting specialists are equipped to provide the tools and resources needed to help you make a fresh start in the next tax season. We proudly serve all provinces across Canada, including Ontario, Nova Scotia, British Columbia, New Brunswick, Alberta, Newfoundland and Labrador, Quebec, Saskatchewan, and Manitoba.
What is a Net Worth Audit?
All Canadian resident taxpayers and, under certain conditions, non-resident taxpayers, are required to file various returns with the Canada Revenue Agency. If a taxpayer fails to file a required tax return, the CRA can demand the filing of missing returns or, more commonly, employ an arbitrary assessment method to determine the taxpayer’s tax liability. These arbitrary assessments often lead to a significant tax debt for the taxpayer, who then bears the burden of proving the CRA’s calculations incorrect. A common method used by the CRA is the Net Worth Assessment, derived from a Net Worth Audit.
The Net Worth Audit is authorized by the Income Tax Act and allows the CRA to examine the various elements of a taxpayer’s lifestyle and assets and compare these against their reported income. This examination can include assessments of where the taxpayer lives, the quality of their home, the cars they drive, the clothing and jewelry they wear, and the leisure and travel activities they participate in. When there is a discrepancy between the taxpayer’s apparent lifestyle and their declared income, the CRA will issue a reassessment.
The principle behind a Net Worth Audit is seemingly straightforward: it considers the annual increase or decrease in a taxpayer’s net worth in relation to their reported income or losses. The CRA begins by comparing changes in a taxpayer’s assets and liabilities from one year to the next. Then, the CRA calculates the taxpayer’s income or losses, taking into account personal expenses and non-taxable income sources. Personal expenditures may be assumed and include categories not typically spent on by the taxpayer, such as tobacco, alcohol, or gambling, which are determined using statistical data. The result of these calculations is the change in the taxpayer’s net worth. This figure is then compared to the reported income to determine if the taxpayer has accurately reported their finances.
Despite its conceptual simplicity, this method often presents practical challenges that disadvantage the taxpayer. One major issue is that the CRA is permitted to make assumptions that may not favor the taxpayer. Once these assumptions are made, it is up to the taxpayer to disprove them to achieve an accurate assessment. Furthermore, the CRA often lacks information about non-taxable income sources, such as inheritances or lottery winnings. The agency typically assumes that any deposit in an account is income and any withdrawal is a personal expenditure, which is not always the case since deposits can also represent transfers, loans, gifts, inheritances, or other non-taxable amounts. The method itself, while straightforward, contains inherent inaccuracies and systemic flaws.
Involved in a CRA Net Worth Audit?
When facing a net worth audit, you don’t need a tax lawyer. At ParaTax, we’ve been providing net worth audit assistance and saving taxpayers unnecessary legal fees for over a decade.
Without a Chartered Professional Accountant (CPA) who is a tax expert on your side, it can be very challenging to counter the assumptions and interpretations that the CRA makes.
Contact the professionals at ParaTax for an assessment today. Call 1 (844) 340-5771 or use the contact form to get started.
CRA & Unfiled Tax Returns
Canada operates on a self-reporting tax system, which requires every taxable entity to report its income to the government by filing the appropriate tax returns. These include the T1 General for individual taxpayers, the T2 Return for corporate taxpayers, and the T3 return for trusts, among other specific types. Consult a tax expert to understand your return filing obligations fully.
Individuals
For individuals, the tax year aligns with the calendar year (January 1 to December 31). Individuals must file a tax return (T1 Return) for the preceding tax year by April 30th if they are employees, or by June 15th if they or their spouse earned business income. If there is no Part I tax payable for the previous year, filing a T1 is not required. This is often interpreted as not having a balance due, such as when an employer has withheld adequate tax from paychecks. However, the requirement is to file a return if Part I tax is payable, regardless of payment. Thus, individuals earning above the basic exemption threshold must file annually. There are special rules for deceased individuals and their surviving spouses, which can be complex and benefit from expert tax guidance to minimize tax liabilities.
Trusts
Trusts must also file tax returns for each of their tax years, adhering to the calendar year. Trustees need to submit a T3 return within 90 days from the end of the tax year.
Corporations
Corporations may have a non-calendar fiscal year, which becomes their tax year. Corporations are required to file a T2 return within six months after the end of their fiscal year. It’s important to distinguish between the return due date and the tax payment deadline to avoid interest on any outstanding balance.
When dealing with CRA unfiled tax returns, you don’t need a tax lawyer. At ParaTax, we’ve been assisting with CRA unfiled tax returns and helping taxpayers save on unnecessary legal fees for over a decade.
Addressing unfiled tax returns promptly is crucial to get back on track and avoid further penalties. Contact the professionals at ParaTax today for an assessment. Call 519-532-2065 or use the contact form to get started.
What is GST & HST?
The GST/HST is a value-added tax that applies to the additional value created by a business in the supply of a good or service. GST stands for “Goods and Services Tax”, and it is collected by the Federal Government. In some cases, provinces have chosen to integrate their sales tax with the GST, resulting in the HST or “Harmonized Sales Tax”. The HST simplifies compliance and reduces tax costs for businesses in the provinces that adopt it. The primary rule is that GST/HST must be applied and collected on every good or service sold, unless a specific exemption applies.
The tax is collected on behalf of the Government of Canada, and the funds collected by your business are held in trust for the government. Depending on a business’s reporting period for GST/HST, the business must report the amount of GST/HST collected or collectible during that period, as well as the Input Tax Credits (ITCs) that can be deducted from the GST/HST collected. ITCs are the amounts of GST/HST that you pay to your suppliers for goods and services that are used or consumed in your own business operations. The difference between the GST/HST collected and the ITCs deductible is the Net Tax. If the amount of GST/HST charged exceeds the deductible ITCs for a period, resulting in a positive Net Tax, you must remit this amount to the Government of Canada. However, if the amount of GST/HST charged is less than the deductible ITCs, you are entitled to claim a refund from the government. Learn more about the CRA audit process.
Involved in a CRA GST / HST Audit?
When facing a GST/HST audit, you don’t need a tax lawyer. At ParaTax, we’ve been providing GST/HST audit assistance and saving taxpayers unnecessary legal fees for over a decade.
Use the contact form or call us today at 519-532-2065.
GET YOUR TAX PROBLEMS SOLVED BY PARATAX & TEAM
CRA Tax Audit Experts in Canada
Audit – a word that can send shivers down any taxpayer’s spine. This year, the CRA will issue about 30,000 audit notices. CRA audits are conducted on a risk-based approach, targeting categories of taxpayers that are perceived to be at a higher risk of tax evasion.
You may be considered a high audit risk if you are self-employed, work in the construction or restaurant industries, have repeatedly reported losses from property or business sources, experience dramatic swings in income, or reside in a postal code that doesn’t align with your reported income.
A CRA Audit can consume a significant amount of time and money and may lead to a reassessment that includes penalties and interest. This can have a severe financial impact, potentially driving taxpayers towards bankruptcy. What exactly is an audit, and what should you expect during the process?
When audited by the CRA, you don’t need a tax lawyer. At ParaTax, we have been providing CRA audit assistance and saving taxpayers from unnecessary legal fees for over a decade.
If you want to avoid a CRA tax audit in Canada, call us at 519-532-2065.
Tax Audit Experts in CANADA?
At ParaTax, our clients can rest assured that they will receive what they are entitled to from the CRA and won’t pay a penny more than legally required.
With over a decade of experience in accounting and tax specialties, we understand the critical importance of ensuring your personal or professional finances are in order. This begins with a licensed income tax audit specialist.
As compassionate and experienced tax accountants in Canada, we work closely with our clients to ensure their financial records are accessible and organized before submitting their yearly income tax reports. A tax lawyer typically needs to hire a tax expert CPA to assist with a tax audit. By working directly with ParaTax, you can avoid the unnecessary legal fees associated with hiring a tax lawyer.
With the support of a ParaTax tax audit specialist in Canada, you can have peace of mind knowing that your financial affairs are in capable hands.
Are You Being Audited For Your Personal or Corporate Taxes?
When facing a CRA audit, you don’t need a tax lawyer. At ParaTax, we’ve been providing CRA audit assistance and saving taxpayers from unnecessary legal fees for over a decade.
If you want to avoid a corporate or personal tax audit in Canada,
call us at 519-532-2065.
CRA Tax Assessment in Canada
ParaTax is proud to be a leader in tax accounting with over 15 years of industry experience. Our tax accountants in London ON specialize in CRA tax returns and assessments for individuals and a wide range of businesses across Canada, including retail, distribution, construction, and non-profit organizations.
Our income tax assessment experts work diligently with clients to ensure they fully understand the tax process from the moment they file their returns to addressing any discrepancies or inquiries brought forth by the CRA.
When you receive a Notice of Assessment (NOA), we’ll help you decode any confusing language, determine if you owe any money, and ensure you receive quick and innovative solutions for your tax return and assessment needs.
If you need assistance with CRA tax assessments, you don’t need a tax lawyer. At ParaTax, we have been assisting with CRA tax assessments and saving taxpayers from unnecessary legal fees for over a decade.
Tax assessments are a crucial part of your submission process. Even after you’ve submitted your tax return, the Canadian Revenue Agency is tasked with reviewing your documents to determine if there are any discrepancies or to clarify what you owe or are entitled to receive as a refund.
CRA Tax Dispute Resolution in Canada
As one of the top tax accountants in Canada, we at ParaTax specialize in helping individuals and organizations in Toronto resolve their tax disputes efficiently and effectively.
Understanding your tax assessment can be challenging, but our experienced CPAs are equipped with the knowledge and insights needed to help you navigate the complexities of the CRA’s findings. We facilitate your tax dispute resolution process, ensuring you achieve the outcome you deserve.
We work with individuals and a broad range of businesses, including those in retail, construction, importing and distribution, and the non-profit sector. We stay informed on the latest market trends and adhere to the highest professional standards in every service we provide.
When facing a tax dispute, you don’t need a tax lawyer. At ParaTax, we have been resolving tax disputes and saving taxpayers from unnecessary legal fees for over a decade.
We assist individuals and businesses in understanding the implications of receiving a tax assessment and guide them through the necessary steps to resolve any disputes with the Canadian Revenue Agency.
Discover the proper way to dispute a tax assessment with the support of our licensed and experienced CPA firm.
Controllership and Bookkeeping Services
Whether you’re just starting out and need to establish proper controls and bookkeeping records, or you’ve resolved issues with the CRA and need to maintain robust financial controls and bookkeeping practices, we can support your business with these essential operational tasks.
Our Controllership and Bookkeeping services encompass:
Training and Support: We set up and install QuickBooks or other accounting software, and provide comprehensive training and ongoing support to you and your staff.
Bookkeeping: Simply send us your receipts, sales invoices, bank statements, and other paperwork, and we’ll reconcile and record your transactions using QuickBooks or your preferred accounting software.
Bookkeeping+: Beyond standard bookkeeping, we manage invoicing, payroll, bill payments, cash reconciliations, and return filings for your business.
Controllership: This service includes all features of Bookkeeping+ along with the provision of monthly reports, benchmarking information, and other vital tools to help you effectively monitor and manage your business’s performance.
Employer Payroll Services
A company’s payroll department is crucial in ensuring employees are paid, contractual obligations are met, and all tax and other withholding duties are complied with. Payroll is a vital part of a company’s accounting as it significantly impacts the net income of most organizations.
ParaTax can assist you in using and setting up your Canadian payroll software or system to simplify payroll tasks, making them less time-consuming and fully compliant with Canadian tax laws and regulations.
Private Enterprise
In today’s challenging economic climate, it is essential for Canadian private enterprises to employ accounting standards that meet their needs and the requirements of financial statement users.
The success of private enterprises hinges on the support of a reliable advisor who understands and values your business, recognizing the personal investment you have in its success. Accounting is described as the process of recording, summarizing, analyzing, and reporting financial transactions of an enterprise. Often referred to as the “Language of Business,” accounting is crucial for any business. It not only aids in making informed short- and long-term business decisions but also supports enterprise growth and market penetration. Proper reporting and accounting practices are fundamental in maintaining investor confidence.
ParaTax can ensure your accounting records are maintained cleanly and up-to-date, guaranteeing that the results of your operations and your financial position are accurately reported. We can analyze your balance sheets and calculate profit and loss account ratios to assess your business’s performance. With correct reporting and accounting practices, we assist you in making strategic decisions that foster short-term and long-term growth, uphold investor confidence, and stimulate economic growth.
Additional Tax Services
As a business owner, your attention is required on numerous fronts—from accounting and finance to operations, marketing, and human resources. However, dedicating excessive time to bookkeeping, payroll administration, financial statements, or rushing to meet tax-filing deadlines can detract from focusing on innovations, sales, customer service, and growth opportunities.
For effective decision-making, it’s essential to have the capacity for accurate predictions about your business’s financial future. This underscores the importance of maintaining precise and comprehensive financial records to understand your financial standing. ParaTax’s accounting and finance services ensure that your financial records are meticulously kept, facilitating important financial projections. We equip you with the finest analytics to comprehend your financial position and achieve your business objectives.
ParaTax’s team of professional tax accountants in Toronto is ready to meet the needs of your business, whether you are just starting out or are an established multimillion-dollar entity. Our entrepreneurial business services are tailored for privately-held and owner-managed companies seeking cost-effective, innovative, and flexible financial solutions. Recognizing that an entrepreneur’s goals can vary as widely as their businesses, we pair clients with professionals suited for each stage of their business life cycle.
Audited Financial Statements
ParaTax brings clarity and simplicity to the complexities your business encounters daily.
You can have full confidence in our expertise and our unwavering commitment to you. We will review and audit your financial statements, providing the independent, objective assurance that your company requires and your stakeholders expect.
CORPORATE TAX PLANNING & TAX RETURNS IN TORONTO
Corporate Tax Accounting
We provide everything you need from a corporate tax accountant to ensure that your taxes are filed correctly and any tax issues are handled efficiently.
We are committed to building strong client relationships. Our organizational size and structure afford us the flexibility to quickly respond to your corporate needs, delivering innovative solutions. Our tax services blend the best that a corporate tax accountant in Toronto has to offer with the most comprehensive business tax services available. From straightforward tasks to those requiring the highest level of diligence and expertise, we are equipped to meet your needs.
ParaTax has successfully helped many corporations avoid CRA audits and has achieved favorable results during the audit, post-audit, and objection stages.
Our Corporate Tax Accounting services include:
- Corporate income tax returns
- Corporate income tax election forms and designations
- Estimates and calculations for various transactions
- Appeals of audit assessments
- T4 and T4A, T5, and NR4 summaries and slips
- “Treaty-based” income tax returns for non-residents
- Advising on corporate reorganizations and other corporate tax planning initiatives, including utilizing the $750,000 Capital Gains Exemption
- Negotiating with the CRA and Ministry of Finance on behalf of our clients
- Coordinating corporate income tax inquiries and government audits
- Corporate Tax Accounting Services You can Trust
Our skilled tax services team offers:
- Many years of experience in tax accounting, filing, and representation
- Unrivaled attention to detail
- Domestic and international expertise to support your business and employees
- A communication style that ensures you are always well-informed and remain compliant with all regulatory and taxation requirements
Lifetime Capital Gains Exemption
Some capital gains are more advantageous than others. How much more? If the capital gains realized qualify for the Lifetime Capital Gains Exemption (LCGE), then up to $824,000 to $1,000,000 of those gains could be tax-free.
Given the complexity of this exemption, it is advisable to consult with a qualified CPA. ParaTax has extensive experience handling and navigating the Lifetime Capital Gains Exemption. Get in touch today at 519-532-2065 or use the contact form to book a consultation.
Good corporate tax planning
Understanding Capital Gains
Some capital gains are more beneficial than others. How beneficial? If the capital gains realized qualify for the Lifetime Capital Gains Exemption (LCGE), then the first $824,000 to $1,000,000 in gains are tax-free. This means that when you dispose of shares as part of a sale of your business, you can receive some of the sale proceeds free of tax. You may also be able to use the exemption for family planning or an inter-generational transfer of a business, or even for farming or fishing operations. The challenge, as with many tax strategies, is meeting the qualifications for the exemption in the first place.
Review & Compilation Services
Many companies present their financial statements, accompanied by a CPA’s report, to lenders, investors, suppliers, and customers. These stakeholders receive varying levels of assurance depending on the type of financial statement provided.
A Review consultation offers stakeholders limited assurance that no material modifications are necessary for the financial statements to conform to the applicable financial reporting framework.
A Compilation provides stakeholders with a broad understanding of your business, the accounting principles employed, and the financial reporting systems in place. It also organizes your financial information in the correct, recognized format.
These tasks require diligence and experience. ParaTax’s exceptional corporate tax accountants deliver thorough business tax services and innovative solutions tailored to meet the specific needs of your business.