Taxes have never been easy. Innovation and disruption of business processes have continuously been leading the changes in taxes. Preparing Tax Return in Toronto & Scarborough whether Personal Tax Return in Toronto or Corporate Tax Return in Toronto or Business Tax Return in Toronto & Scarborough is getting complex day by day because of incorporating new tax processes and bringing them online by Canada Revenue Agency (CRA) on regular basis.
The penalty due to mistakes in preparing Tax Returns in Toronto could be heavy, so the taxpayers should be cautious while Tax Preparation in Toronto or obtaining Tax Preparation Service in Toronto. Tax Service in Toronto is also requiring Tax Accountants in Toronto or Tax Professionals in Toronto to be more updated with latest tax changes so that they can advise their clients as Tax Consultants in Toronto or Tax Advisors in Toronto.
At MAQ CPA, our Tax Preparers in Toronto are experienced in providing Income Tax Services in Toronto and take the utmost care in Tax Return Preparation in Toronto. Out Tax Specialists in Toronto first, take few minutes to understand the tax situation of the taxpayer and then start preparing Income Tax Return in Toronto to make sure that our Tax Returns Preparation in Toronto does incorporate all tax slips and tax information.
To learn more about our Tax Preparation Services in Toronto you can visit our respective service pages. Links for Personal Tax Returns in Toronto and Corporate Tax Returns in Toronto services are furnished below:
Corporate tax service and
Personal tax service
We are a team of CPA Professionals and Tax Accountants in Toronto providing error-free Income Tax Services in Toronto and Small Business Accounting Services in Toronto for individual taxpayers, self-employed individuals, professional corporations and small business owners.
Who is required to file a tax return? Canadian tax system requires individuals, self-employed businesses, for-profit corporation, not-for-profit corporation, Non-resident Corporation to file their tax returns every year. There are different types of returns Canadian taxpayers submit to Canada Revenue Agency (CRA), most common and frequent ones are, among others, income tax return, information return, goods and service tax return. Individuals including self-employed businesses file T1 General Income Tax and Benefit Return, and Corporations file T2 Corporation Income Tax Return every year. There is another type of tax return named T3 Trust Income Tax and Information Return, which is usually submitted by Trusts and Estates. An individual taxpayer must file an income tax return if s/he has to pay tax or CRA sent a request to file a tax return or received an advance payment of working income tax benefit or disposed of any capital property or realized any capital gain or elected to split pension income with spouse or repay employment insurance (EI) and/or old age security benefits or have not repaid required amounts against withdrawal from registered retirement savings plan (RRSP) under the option of home buyers’ plan (HBP) or the lifelong learning plan (LLP) or have to contribute to Canada Pension Plan (CPP) or have to pay EI premium on eligible earning. An individual taxpayer may also want to file an income tax return even if foregoing requirements do not apply to him/her. If the taxpayer wants to claim a refund or working income tax benefit or wants to receive goods and services tax / harmonized sales tax (GST/HST) credit or Canada child benefit payments or wants to carry forward a non-capital loss for applying against non-capital gain in other years or wants to carry forward or transfer tuition, education and textbook amounts and unused investment tax credit on expenditure incurred during the current year or wants to keep receiving guaranteed income supplement or allowance benefits under the old age security program or wants to report income to create RRSP contribution limit. Also, the legal representative of a deceased taxpayer may have to file an income tax return. Corporations who are a resident of Canada must file corporate income tax return every tax year even though they have no tax payable, they are non-profit organizations, tax-exempt corporations and inactive corporations. However, there is an exception for tax-exempt Crown corporations, Hutterite colonies and registered charities, they do not require to file a return. Corporations are required to file their income tax returns electronically annual gross revenues exceed $1 million. Non-resident corporations also have to file a T2 corporation tax return if, at any time in the year, it (a) carried on a business in Canada or (b) had a taxable capital gain or (c) disposed of any taxable Canadian property. However, there is an exception for situation (b) and (c) above of a non-resident corporation, if it meets all criteria such as (1) there is no tax payable under Part I for the tax year, (2) it is not liable for any tax relating to previous years, (3) each taxable Canadian property disposed of is excluded property under section 116 or a property for which a certificate was issued by CRA under section 116. There may be few other situation non-resident corporations may want to file a T2 Corporation Income Tax return, they are:
There are usually two types of trusts and tax rules are different from each other, they are either testamentary trust or inter vivos trust. When an individual taxpayer dies, a testamentary trust is generally created under the terms of the Will of a deceased taxpayer or by the court order respecting provincial or territorial laws. An inter vivos trust is a trust that is not a testamentary trust. However, there are many types of inter vivos trusts. A trustee has to file a T3 trust income tax and information return if income from trust property is subject to tax and in the tax year, the trust: has tax payable or is requested to file or is resident in Canada and has either disposed of, or is deemed to have disposed of, a capital property or has a taxable capital gain (for example, a principal residence, or shares) or is a non-resident throughout the year, and has a taxable capital gain or has disposed of taxable Canadian property or is a deemed resident trust or holds property that is subject to subsection 75(2) of the Act or has provided a benefit of more than $100 to a beneficiary for upkeep, maintenance, or taxes for property maintained for the beneficiary’s use or receives from the trust property any income, gain, or profit that is allocated to one or more beneficiaries, and the trust has: total income from all sources of more than $500, income of more than $100 allocated to any single beneficiary, made a distribution of capital to one or more beneficiaries, or allocated any portion of the income to a non-resident beneficiary. (Source: CRA website) Please contact us at 416-901-4126 or send us your query at email@example.com
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