FAQ: FREQUENTLY ASKED QUESTIONS

  1. How can CRA notice your unfiled tax returns? 
  2. Are you afraid to pay penalties and interest for your unfiled tax returns? 
  3. How does the Late-filing penalty calculated by CRA?
  4. Why do you need to have an experienced tax specialist for your unfiled tax returns?
  5. How do you solve my serious tax problems due to unfiled tax returns for years? 
  6. What are the legal actions and cost consequences if my tax problems are not fixed?
  7. What are factors will be considered by CRA whether taxpayer relief is warranted?
  8. What is the ten years rule about?
  9. Can I solve the tax problems by myself or a regular accountant?
  10. How can CRA find out your undisclosed income?
  11. What is my qualification for Voluntary Disclosure Program (VDP)?
  12. What happens if my disclosure denied by CRA?
  13. Why you need HELP from TaxFix Solutions for VDP application?
  14. Can you help me negotiate an affordable tax payment plan?
  15. I come from the other city of Canada which is very far from your office. How can I get your help from a distance?
  16. What are those financial records for tax audit requested by CRA?
  17. How long does the CRA tax audit take?
  18. Why hire a ‘Tax Representative’ like us to deal with CRA to solve your tax problems?
  19. What documents should I bring for the initial free consultation?
  20. Is your tax resolution service affordable?

QUESTIONS & ANSWERS:

1. How can CRA notice your unfiled tax returns? 

The CRA has the ability to assess you on any taxable income and benefits, and also for the outstanding GST/HST returns. The CRA will collect any information about you, and make assumptions in order to do a notional assessment on your behalf and estimate your income. If you haven’t filed your tax returns, it is wise to contact TaxFix Solutions to fix your tax issues.

2. Are you afraid to pay penalties and interest for your unfiled tax returns? 

Some of the taxpayers fall behind filing tax returns is due to their poor financial situation. This is not the reason for not filing tax returns. You might be in the horrible situation: get criminal charge due to tax evasion. If you don’t pay off the tax debt, interest and penalties that CRA assumed, they will then send collection agent to trace you for the tax debt you owe, or have bank levy, wage garnishment, or tax lien on your assets. Meantime, the tax debt will like a huge hole to eat all your money. CRA will charge penalties for late tax filings on top of taxes owed on filing. In addition to the late tax filing penalties, the basic interest rate plus 4% will be charged on any overdue balance owing on return or on late or insufficient instalment payments. This is the reason why people with unfiled tax returns for multiple years have more tax debts due to accumulated high amount of penalties and interests.

3. How does the Late-filing penalty calculated by CRA?

If you do not file your return for 2014 on time and owe tax for 2014, CRA will charge you a late-filing penalty. The penalty is 5% of your 2014 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months.

If you have been charged a late-filing penalty for multiple years of unfiled returns, there may be10% of the late-filing penalty applied for 2014 balance owing, plus 2% of your 2014 balance owing for each full month your return is late, to a maximum of 20 months.

What to do? Don’t be panic. You need to contact an experienced tax professional to deal with it. We have the solutions for each case. You might have opportunity to avoid penalties and interest.

To call TaxFix Solutions (416)716-9065 to have your assessment immediately

4. Why do you need to have an experienced tax specialist for your unfiled tax returns?

No matter how many years of your late tax filing past due, it is important to take action and get compliant immediately. You should not simply go to a regular tax preparer and send all the returns. They are not specialized tax resolution specialist, and don’t know the special rules or polices to get you out of troubles. Who is the best person to help you to get out of trouble? TaxFix solutions team is specialized in dealing with unfiled tax returns or late tax filing. We can negotiate with CRA for you to become compliant. Therefore, carefully choosing a best tax specialist to solve the late tax filing issue is very important.

5. How do you solve my serious tax problems due to unfiled tax returns for years? 

  1. When a client is the subject of tax debt collection activity due to back taxes, we will stop the collection process if happened. No matter it is a wage garnishment, a tax lien, a tax levy or other enforcement effort.
  2. We will determine where the outstanding tax debt coming from. Outstanding tax debts are very often based on incorrectly filed or unfiled tax returns or notional assessment by CRA.
  3. Filing of all back returns or amending incorrectly filed returns will start immediately.
  4. We will assess a client’s ability to qualify for one of the various tax settlement programs after we verify the amount of back taxes owed is correct. We will look at available settlement options including Installment tax payment Agreements.

6. What are the legal actions and cost consequences if my tax problems are not fixed?

The CRA has the power and a special set of laws that are applied to tax debt. When it comes to collecting tax debts, the following costly consequences from CRA could be the following.

  • Tax debt increasing daily due to compounding interest and penalties
  • Wage Garnishment –your employer is contacted by CRA to take funds from your paycheck. And also you may feel embarrassment when your employment is aware of your back tax debt. It can have the negative impact in the work place.
  • Seizure of Assets – Your assets will be seized and sold to lower price by CRA to pay back the tax debt, such as houses, cars, etc.
  • Bank Levy – your bank account will be frozen and your money is unavailable for use
  • Tax Lien – your property will be attached as security for paying back the tax debt
  • Criminal Action – your may be sued by CRA as criminal for tax evasion or fraud

From the above, you can see owing back taxes is a serious threat to your financial security.

Take the action now to call TaxFix Solutions at (416)716-9065. You need the help from tax expert to speak to CRA on your behalf. Our committed tax team will secure the most favorable tax relief solution for you and enable you finally to become debt free.

7. What are factors will be considered by CRA whether taxpayer relief is warranted?

For people who do not have the financial means of paying back a tax debt, there are multiple settlement options available.  In order to qualify to file the CRA tax relief, or eliminate or reduce interest and penalty charges, CRA will consider the taxpayers’ request depending on the following factors, such as

  • An error from CRA, such as delays or errors in processing the tax return;
  • Extraordinary circumstances beyond your control, like a natural disaster;
  • Health problems or a death in the immediate family;
  • Financial hardship like serious financial burdens leading to inability to pay the tax debt or interest and penalty charges, such as unemployment;
  • Other occasions not specifically outlined above may be considered; These are only guidelines

8. What is the ten years rule about?

Please note that CRA can only consider requests for taxpayer relief for the previous ten calendar years in which an income tax return is filed or the request is submitted. It means that the taxpayer has ten years to request relief for

  • Interest or penalty charges elimination or reduction.
  • An acceptance for a late, amended, or revoked in income tax election used by the taxpayer in the preparation of his income tax return.
  • Income tax assessment beyond the normal three-year period that requesting adjustment or refund.

9. Can I solve the tax problems by myself or a regular accountant?

Ask yourself a couple of questions:

Do you know where to begin?

Do you know what the current updated tax relief program is?

Do you know what the rule for qualifying those tax relief programs is?

Do you know how to complete the application to get a better chance for a relief?

Do you know your rights? ….and more

Most people are overwhelmed when trying to solve their tax issue by themselves.

It is not an easy process for selecting and qualifying for a tax relief settlement. You need an experienced tax specialist with extensive knowledge and skills in negotiation to handle every aspect of the settlement process for you.

We will design the best possible plans for which you may qualify. Tax specialist will speak with CRA on your behalf for the best result.

In some cases, CRA have already started the serious collection actions, such as to place levies on your bank accounts and places liens on your home and property etc… You need a qualified expert behind you to fight the CRA and negotiate a temporary suspension of further collection activity.

Call us at (416)716-9065. TaxFix Solutions Inc. is dedicated to solve your tax problems!

10. How can CRA find out your undisclosed income?

Don’t try to hide your undisclosed income. CRA has many ways to find out about your undisclosed income, such as from your bank account or employer; when your customers or suppliers are tax audited by CRA, etc….

In order to avoid heavy penalty charges and interest, the only way to avoid is to make a voluntary disclosure. However, you have to be qualified to get into this program.

11. What is my qualification for Voluntary Disclosure Program (VDP)?

The Voluntary Disclosures Program (VDP) gives the taxpayers opportunity to disclose their unreported income to avoid penalties, interest and prosecution.

You must meet the all of the following conditions:

  1. Must be voluntary (Without being fist contacted by CRA);
  2. Must has potential penalty involved to your unreported income;
  3. Must be at least more than one year overdue for your unreported income;
  4. Must be completely disclosure of your unreported income for all reporting periods.

Once CRA accepts the disclosure, you will not be subject to penalties. And you won’t face potential prosecution. However, you still need to pay the amount of tax owing plus interest.

12. What happens if my disclosure denied by CRA?

You will receive a notice of denial from CRA. And on the letter, it could be the following stated.

  • Your disclosure is rejected;
  • An audit or investigation may be started;
  • The penalties and interest charges are issued;
  • An reassessment may be issued based on the disclosed information
  • Other consequence may exist…depend on case by case

13.  Why you need HELP from TaxFix Solutions for VDP application?

To have us on your side, we will assist you understand the potential risk and benefit by the VDP application. TaxFix Solutions will carefully draft your disclosure application and manage the process to ensure you are better protected from potential dangers and criminal prosecution when dealing with a government agency. We can make initial anonymous inquiries on your behalf to preserve confidentiality.  And your discussion with us is completely confidential.

Don’t wait until you are caught by CRA for your unreported income!

Stop hiding your problems! It may ruin your life.

Take the action now! Contact us for a FREE confidential consultation at (416)716-9065.

14. Can you help me negotiate an affordable tax payment plan?

Yes. We can help you regain financial freedom!

Dealing with taxes owing and negotiating a CRA tax payment plan with CRA collection agent can be intimidating for anyone. Don’t panic! You just need a tax professional to help you. We have helped many taxpayers and businesses enter into the agreement with CRA that allows them to make smaller payments over time until they have paid their debt.

Now you are lucky to have us on your side. We have helped many our clients successfully negotiate the affordable and reasonable tax payment plan to suit their financial position. This is also an opportunity for you to settle your tax liability for less than what you actually owe the CRA. If your current financial situation clearly shows that you have no ability to pay your debt in full, we will have a solution that works for you. We know how to negotiate with the CRA to let you pay off your tax debt that won’t put you into financial hardship. We are here to help you to get the reasonable payment method accepted by CRA to meet your needs.

Call us at (416)716-9065. TaxFix Solutions Inc. is dedicated to solve your tax problems!

15. I come from the other city of Canada which is very far from your office. How can I get your help from a distance?

There is no obstacle to get our service from a distance. We have helped lots of taxpayer from different cities across Canada, and also even Canadians lived in other countries. We are using internet, email, online message system, telephone, scanning and fax etc. to make our communication effectively and fast. We guarantee the response within 24 hours. Please take the advantage of FREE consultation first to evaluate your case.

Call us at (416)716-9065. TaxFix Solutions Inc. is dedicated to solve your tax problems!

16. What are those financial records for tax audit requested by CRA?

  1. What are financial records? Here are examples:

Sales invoices; Expense receipt; and expense account statements

Bank statements for business account and credit card; Income tax return records;

Any supporting documents such as bank deposit slips or corresponding for business which can prove the financial information reported is true and accurate. All those records should be sufficient to determine the amount of taxes filed and owed to the government of Canada.

  1. You have to clearly separate the financial records for each business if the taxpayer has more than one business.
  2. If your business register as corporation, trusts or partnership, it requires additional financial document, such as ownership of the corporation; transfer of shares agreement if any; minutes for directors meetings.
  3. Six years rule for financial records
  4. Taxpayers should keep their financial records and supporting documentation for six years from the date in which the taxes are filed. In some cases, specific financial records are required to be kept for longer period of time requested by CRA. In general, the business owner should keep the financial document or any records related to share registry, disposal of property or acquisitions or sale of business.
  5. Format of financial records keeping
  6. Taxpayer can keep the financial records in both an electronic format and paper format, such as scanning receipts and invoices saved in the computer as long as they are readable.
  7. Who is legally responsible for financial records?
  8. Regardless of whether you have hired professional bookkeeper or accountant to manager your accounting and tax tasks, as a business owner or taxpayer, it is wise to keep all your important financial record personally because you are legally responsible for those financial records as per tax act.

17. How long does the CRA tax audit take?

It depends on the case by case. Generally, it will base on the complexities of the case, the type of organization, the availability of the records, the size of the business.  Usually, it takes a couple of weeks or months.

18. Why hire a ‘Tax Representative’ like us to deal with CRA to solve your tax problems?

To hire TaxFix Solutions as your Tax Representative, we will deal with CRA on your behalf that means you don’t need to talk to CRA directly. An experienced tax resolution firm with extensive knowledge regarding tax act, policies, and procedures will negotiate a reduced tax settlement to relieve your financial stress.

A good tax representative will treat you in a professional and confidential manner; unlike the intimidating actions of CRA only sent you the letters and the aggressive CRA collection agent only wants take the money from your pocket.

Our tax representative will first have an initial meeting to understand your situation, and then to come out the best solution per tax policies. If you deal the complex case by yourself, you may miss the chance or your right to avoid the penalties. The most important thing is that taxpayers who have less extensive tax knowledge and experience will lead them in a tough situation and could be in a criminal prosecution for tax fraud and tax evasion etc.

Call us at (416)716-9065. TaxFix Solutions Inc. is dedicated to solve your tax problems!

19. What documents should I bring for the initial free consultation?

We will assess and evaluate your tax situation by any letters or documents that you have received from the CRA relating to your tax problems, such as notice of assessment, a demand to file notice, Intent to Levy, collection notice and more.

20. Is your tax resolution service affordable?

Yes. Our tax resolution service with high quality is very reasonable that every taxpayer can afford.

  • FREE confidential consultation with no obligation!
  • Affordable Fee that every taxpayer can pay to fix the tax issue!
  • Guarantee the lowest cost to have your desired result – Price match!

The cost of services will vary depending on the type of tax problem, the details of the case and the severity of your tax debt and whether the taxpayer is individual or corporation.

If we can’t provide the Tax Relief Solution, we will let you know upfront and we won’t charge you a penny. If we can’t do the work, we don’t deserve the money.