With the expansion of the digital economy, CRA know knows which types of jobs are risk for under reported income, including ridesharing services as Lyft or Uber, accommodation-sharing services like VRBO or AirBnB, various freelance and contract work such as Fiverr or Upwork, third-party selling through platforms as Amazon or Shopify, and online content creation such as Medium
With the CRA expanding their digital Tax initiatives, CRA have new ways to use their robot tax agents to identify potential tax evaders through statistical analysis (just like Facebook or Google build a digital profile of your interests for advertisers) in the Digital Economy.
We understand that workers are taking these opportunities to help cover living costs and improve their wealth creation and freedom. However, in our experience in taking in clients from other tax firms who helped their client hide income, we know it is not worth to risk not declaring their full incomes and have your bank accounts frozen and you face an automate tax audit every few years.
The CRA lists penalties for false reporting or repeated failure to report.
However, with the digital economy, it is very easy for you to comply with the tax accounting. By using debit or credit cards or e-transfers to pay for all expenses and ask for all clients to pay via e-transfers, our firm can recreate your tax accounting sometimes hours.
If you have a ‘side business’ or are a self-employed workers, you want to ensure you make regular installments to the CRA to show the CRA that you are complying with the tax laws.
With the automation of your accounting transactions, it makes it much easier for us to then identify all the tax deductions and credits available for you.
With our digital tax systems and expertise, we can easily help you claim literally hundreds of potential deductions and expenses that you are entitled to that no software will necessarily find for you.
Filing your taxes on time and accurately also help open up new benefits from the various levels of government. It also ensures that you have access to your Canada Pension Plan and other income programs from the government.
And ensuring you are properly registered for sales taxes further allows you to claim credits and benefits for yourself.
Contact us to find out how digital accounting and digital tax can automate and eliminate your stress with filing taxes.
