5 Myths About Taxes That You Should Believe in Oakville

January 5, 2022 | Written by: Sohail Afzal

Taxes

We know it’s confusing to deal with taxes. In a recent survey, 41% of Canadians reported enjoying filing their taxes, but many are dissatisfied with the process or frustrated by the confusion and frustration it may bring. Our experts have compiled a list of the top 5 Oakville tax myths to help clear up the ambiguity. Read on to find out more.

Myth #1

After you file, if you receive a refund or Notice of Assessment (NOA), you won’t hear anything else about this return for the next couple of years.

Taxes are something many Canadians think they can avoid thinking about for another year after they file their return. But it isn’t that simple. However, the Canada Revenue Agency (CRA) can still review a filed return a few times to ensure its accuracy. Keep your documents with you for at least six years – the CRA may ask for documents at any time. So make sure you keep all your records for at least six years. The government might reassess your return, and you might receive a Notice of Reassessment that indicates a new amount of tax you owe.

Myth #2

It is too late to change your tax return if you have already received your NOA. 

To claim credits and deductions you might have missed in the past, you can request adjustments to your previous claims if you have the supporting documents. You don’t have to wait a certain amount of time to add income to previous tax returns. Consider the scenario where you find old donation slips you’ve forgotten about. Or perhaps you find a slip that wasn’t filed. To amend your tax return, you can file the federal adjustment request form (T1), as well as the Québec request for an adjustment form.

Myth #3

It’s unnecessary to worry about information slips going to the wrong address.

You are responsible for your information slips, regardless of where they are sent. Defaulting on reporting your information slips twice within four years will result in penalties and an audit of your taxes. If you move, let the CRA know as soon as possible, so information slips are not missed. Registering for a CRA My Account will give you access to all your information slips.

Myth #4

Working outside of Canada doesn’t require filing a Canadian return.

Having a home, spouse, or dependants in Canada means you will have to file a Canadian tax return if you went to school or worked outside Canada.

Although you might not have significant ties to Canada, filing a Canadian return is still recommended if you have a lot of secondary residences. Some examples are:

  • Personal property (such as a car, furniture, etc.) in Canada;
  • An association with a Canadian social organization (for example, membership in a recreational or religious group);
  • Credit cards or bank accounts issued in Canada;
  • A valid driver’s license from Canada;
  • The Canadian passport
  • A provincial or territorial health plan in Canada.

Conclusion

Filing taxes is a complicated matter, and not many people can do it independently. That is where you need help from a professional accounting firm in Oakville that can help you and handle your taxes and other accounting needs. For more information, contact us, and we will gladly help you out.

Sohail Afzal CPA Toronto

Sohail Afzal, CPA, CMA, MBA

Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.

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