We've written often about the penalties that come to business owners who don't properly pay their taxes.
Audits, penalties, fees - there's plenty that people have to worry about if they don't pay off their debts to the Canada Revenue Agency (CRA).
However - as one recent report from The Globe and Mail illustrated - not paying your taxes isn't the only issue you have to worry about with the CRA. You also have to make sure your business isn't paying too much!
According to a report from that news outlet, the CRA recently conducted research and found that there are only a few profiles that taxpayers can fit into, including:
• People who intentionally pay less than they actually owe
• People who short-change their tax payments for entirely accidental reasons
• And one CRA doesn't want to mention: the individuals and businesses who pay too much
The Globe and Mail noted that the reason many people overpay on their taxes is, sadly, quite simple: This "occurs because they fail to claim tax credits, deductions, and benefits that they are legally entitled to solely due to a lack of knowledge and information."
This illustrates why it's so important for business owners, farmers and all individuals to pay close attention to their potential tax deductions throughout the whole year: If you're not taking the proper steps to pay your taxes properly, then you may end up sending a lot more money away then you actually need to.
Can you get that money back?
There's a 3-year limitation period There's a statute of limitations regarding receiving a refund on tax payments that you actually could have deducted or received a refund on.
So while you do have a few years to correct your mistake, after a period of time, this money's gone - even if you can prove that you've overpaid in previous years, you may not be able to recoup.
This is yet another thing that illustrates why businesses, farms and other entities should consider teaming with a firm that can help with bookkeeping for small businesses.
Tax payments are an integral part of any company's finances - and if you're not saving as much as you're entitled to, then you're damaging your organization in the process.
By obtaining every deduction possible, though, you're giving your business an opportunity to succeed.
All new FBC Members receive a review of your past 3 years' taxes. This ensures you're better off financially and helps us establish future tax-saving strategies for you.