Under Canadian Tax law, the standard rate of GST in Canada is 5%.Each Province may have a different type of sales taxes wether it is HST or PST on a restricted list of goods and services. It is important to know that sales taxes are administered by the Federal Government in every Province Except Quebec where The Revenu Quebec Agency Is in Charge of collection and audits .
The penalties for not filing your income taxes, sales tax report or employer remittence forms are where working with a professional can help avoid costly mistakes.
Penalties are 5% + 1% per month for first time offenders and can be as high as 10% of the balance owing plus 2% per month!
When you are under audit, these interest and penalties add up fast. There is even a penalty that is 50% of the taxes owed on undeclared income.
Never is this more important that in the planification of retirement or the sale of a company. What are the fiscal implications of a transaction? Should the assets or the stocks be bought. Can the Capital Tax Gain Exemption be Used and Maximized?
Having a Fiscal Representative is like having a lawyer when you are being interrogated by the police. Did you know Auditors have even more rights then police officers for their audit, that the burden of proof is inverted to the tax payer and that they do not need to prove beyond a reasonable doubt their claims, only that it is more likely then unlikely.They also outright make-up numbers and call it cost of living or projections.