REGINA - Entrepreneurs and small business owners are reminded the importance of filing their taxes properly, and that they can rely on the Canadian Revenue Agency to get all the necessary information required straight from the source.
“Paying taxes is part of the reality for any small business owner, or startup entrepreneurs,” said Joanne de Waal, communications manager of the western region for the Canada Revenue Agency. “There are many benefits of filing taxes for small business owners too, so it is always good to report their business income properly and on time.”
Gurpreet Plaha, a Canada Revenue Agency spokesperson, explained that a small business could include just one person, who has chosen to be an influence, or is providing a service or product from his or her own kitchen, or garage.
For the CRA, a business is defined as an activity where there is a reasonable expectation of profit and there is evidence to support that intention. The type of structure for the business has a significant effect on the way on how to report business income, as it can impacts the type of tax returns that are filed each year, and many other matters.
However, even though small businesses should be filing their taxes and reporting their income to CRA, not all businesses will need a business number (BN) or GST number.
“It is really easy for any self-employed person to add a small business tax form to their personal filing, and those tax forms help you take those first steps in reporting your income properly and correctly,” added de Waal.
There is an extensive list of business expenses that could be written off while reporting taxes too, “while one can not claim personal or living expenses, there are many other eligible business expenses that entrepreneurs could claim,” said Plaha.
As each small business or start-up is unique in their own way, the CRA provides business knowledge that suits each business with their Liaison Officer services.
“Our Liason Officer is a personalized service, where small businesses owners can meet with a CRA professional one-on-one, and we answer any questions, and provide our tax knowledge absolutely free,” explained Plaha.
Since 2014, more than 77,000 small businesses have benefited from the CRA’s Liaison Officer service. Small business owners can request a Liaison Officer service right off the Canada Revenue Agency website.
“It is a good way to start a strong business foundation, that is personalized just for you, and for your business,” added de Waal.
Small business owners can also set up their own online MyBusiness Account, which is located in the same place on the CRA website as their personal MyAccount. It is the best way to file taxes, as all the information stays confidential, and it is an easy way to check on notices from the Canadian Revenue Agency.
Most importantly, CRA reminds residents that they will never demand for tax payments over the phone, nor will they ask for personal information that is only available on your tax form. Residents who receive a phone call that they believe is a scammer are encouraged to just hang up the phone, and verify the call was from the CRA by either checking their MyAccount, MyBusiness Account, or phoning the CRA directly.
