With so many tax-related computer programs out there, filing your own income taxes doesn’t have to be complicated. But not even the most sophisticated software can prevent people from making the kind of dumb mistakes—or from telling little lies—that raise a red flag with the Canada Revenue Association.
Here’s a look at common blunders that tend to trigger assessments or audits.
There’s a big difference between claiming $15,350 on meals and entertainment for business expenses and $1,530.
“Accounting firms received an email from CRA last week about taxpayers adding extra zeros, resulting in huge tax liabilities,” says Christian Stewart, certified general accountant and founder of North Vancouver’s Stewart & Associates. Be sure to triple-check your return before filing.
Fibbing about a pastime being a business:
“Taxpayers will often claim a hobby business on their tax return, reporting losses year after year,” Stewart says. “Common ones would be an artist who never sells aRead More »from Common tax blunders likely to trigger an audit