Category Archives for "Sales Taxes"

Self Employed? Do You Know What Your Tax Obligations Are?

By Randall Orser | Business Income Taxes , Freelancing , Home Based Business , Sales Taxes , Small Business

While self-employment comes with some great benefits, such as a flexible work schedule and freedom to select your work projects, you also have big responsibilities, when it comes to tax time. You are totally responsible for reporting your income and filing and paying your taxes.

It’s a good idea to get familiar with the CRA required self-employment tax forms. When you understand what you have to do, you can organize your finances, keep great records, and make tax filing much easier.

Do you need to file self-employment taxes? You are considered by the CRA to be self-employed if your business is one of the following: 

  • A sole proprietorship
  • An unincorporated partnership
  • An unincorporated limited liability partnership
  • An unincorporated general partnership

Your business income is then part of your personal tax return which means that you will pay the personal income tax rate rather than the corporate rate if your business was incorporated.  

Do you need a T4A?  Unlike when you are employed and receive a T4 from your employer, if you are self-employed as an independent contractor then your clients should send you a T4A slip which will include the dollar amount for each job you do for them.  To figure out your income you need to add the amounts from each slip.

However, you will not always get a T4A especially if you are selling goods direct to customers, they will not give you one. You will then be responsible for keeping accurate records of all of your income from receipts, invoices and any other proof of income.  It is a good idea to use a program such as Quickbooks to keep track and you can run a report to find out your total income for the year.

What is a form T2125 for?  This a Statement of Business or Professional activities which helps you to calculate your gross income as well as your business expenses which you deduct from your income to lower your taxable income.  On the T2125 you will have to provide the following information:

  • Information about your business including a description of your products and services.
  • Income from internet activities such as affiliate sales or ad traffic revenue.
  • Business or professional income.
  • The amount of GST you paid 
  • Costs incurred while making and selling your goods
  • Business expenses
  • Expenses paid for while running your business from home
  • Information about your business partners if you are in a partnership

Once you have completed form T2125 you will know your gross and net income for the year which you will enter on your T1 form. If you run a few businesses, then you will need to fill out a T2125 for each of them.

When Do You Need to Pay GST?  If your business makes more than $30,000 per year then you are required to register for a GST number and collect GST from your customers.  You will submit a GST return either monthly, quarterly, or annually.  

Tax Deadlines  If you are self-employed you will have until June 15th to file your tax return instead of the April 30th deadline.  However, you should still pay any taxes you owe by April 30th.  If you are employed in addition to running your own business, then you will have to file your T1 return by April 30th. Your clients have until the last day of February to send you any T4A slips.

 

Registering Your Business for Sales Tax

By Randall Orser | Sales Taxes

In Canada, there are two different kinds of sales taxes, a goods and services tax or GST and a provincial sales tax or PST.

Some provinces (Ontario, New Brunswick, Newfoundland, Nova Scotia, and PEI) have harmonized their PST with the GST and charge HST (Harmonized Sales Tax). British Columbia, Saskatchewan, Manitoba, and Quebec have not harmonized their PST & GST so it’s two separate taxes. 

You do not have to register for the GST/HST until your sales are over $30,000. However, if you are serious about being in business or have to buy lots of equipment or other goods before starting your business, then register as soon as you have your business registered. This also goes if your sales are mostly business to business. Remember that the HST is just the GST with the PST added onto it; it’s the same tax and is remitted along with any GST you charged.

PST is a tough one as every province has different registration requirements, and on what items they charge PST. Definitely check into the province where your business is located and see if you need to be charging the PST. 


British Columbia and Manitoba require anyone selling into those provinces to register for the PST if you sell regularly into that province. Saskatchewan suggests you register, however, doesn’t require it. Quebec only requires you to register if you have an address there, an employee, or operations, such as production or marketing activities. 

To learn more about registering and charging sales tax visit https://canadabusiness.ca/government/taxes-gst-hst/federal-tax-information/overview-of-charging-and-collecting-sales-tax/

Tax Implications of the New Pot Legalization

By Randall Orser | Business Income Taxes , Sales Taxes , Small Business

The government discharged its 2018 spending plan on Tuesday and with it, more subtle elements on how lawful cannabis will be burdened. 

The financial backing reaffirmed plans to apply an extract obligation on cannabis, however affirmed that not all cannabis items will be influenced. Low-THC cannabidiol oils and other low-THC remedial items will for the most part not be saddled, as per the financial plan. Doctor prescribed medications got from cannabis additionally won't be burdened. At the point when cannabis is burdened, the expense will apply to governmentally authorized makers, and will be either a level rate on the amount of cannabis in a given item or a level of the deal cost of a pot item – whichever is higher. 

Along these lines, this could imply that cannabis will be saddled at $1 per gram, or 10 for every penny of an item's value, whichever is higher – as per an understanding came to with most areas in December 2017. The main holdout is Manitoba up until this point. Back Minister Bill Morneau said that the administration's first worry with cannabis sanctioning is securing Canadians. 

"My approach is to ensure that the tax collection of cannabis is predictable with the objective of keeping cannabis out of the hands of children and out of the bootleg market. That implies keeping the duties low so we can really dispose of the lawbreakers in the framework." 

In any case, Dan Kelly of the Canadian Federation of Independent Business isn't sure that the expenses are sufficiently low. 

"While it's unquestionably reasonable amusement for the legislature to impose these items, the stress obviously is whether you don't get the tax collection levels precisely right, it invigorates the underground economy." 

"Many have recommended that the level of tax collection that is being proposed would imply that the over the ground cost will be higher than the underground market cost and that may energize and fundamentally keep the business subterranean." 

He stresses that the administration is endeavoring to snatch excessively in impose and all things considered, probably won't accomplish its objective of bringing cannabis out of the underground economy. 

"I figure a more astute procedure is begin with an exceptionally sensible level of tax assessment to guarantee that we get the business over the ground before we begin tightening it up," he said. 

Cannabis is relied upon to be authorized this late spring, yet the national government has faltered on the particular date. The national government will keep one fourth of the income from the extract assess and the regions will get the rest. In any case, if the government's offer is more than $100 million a year, the areas will get the overabundance. 

The government expects that the territories will exchange the vast majority of this money to regions, who the government says are "on the cutting edges of authorization." 

The financial backing does not anyway say how much income it anticipates that these expenses will create. For at any rate the initial two years, the central government won't have the capacity to keep more than $100 million every year on account of their concurrence with the areas, however there are no appraisals on the aggregate size of the pot. 

The legislature will likewise put resources into a state funded training effort to enlighten Canadians regarding the dangers of weed utilize. 

Tending to the opioid emergency 

The government is intending to put $231.4 million more than five years in battling the opioid emergency. The greatest offer of that, $150 million, is a one-time crisis venture to enhance access to treatment programs. 

A portion of alternate measures will help outskirt protects better distinguish approaching shipments of fentanyl and enhancing general wellbeing information on the opioid emergency, however it doesn't give specifics on both of these measures.

A wide range of cash 

At each level, developing monetary action, or total national output (GDP), converts into government income. Customer facing facades will pay metropolitan charges. Rustic creation and storerooms pay property charges. Organizations pay imposes on benefits. They likewise pay permit expenses. 

Since Ontario has assigned Shopify as the administration's business stage, cannabis cash will go into new innovation. The new lawfulness of the medication, anticipated that would be legitimate next summer, will probably goad more innovative work on medicinal utilizations for weed, its subsidiaries and analogs. 

What's more, that is also cutting the cost of capturing and imprisoning individuals criminalized for cannabis utilize. 

In spite of persistent endeavors to gauge how much pot Canadians devour, Statistics Canada has not discharged a projection of the aggregate post-legitimization estimation of the business. The parliamentary spending officer (PBO) has assessed the aggregate effect of household deals on the economy will be like that of the brew showcase. 

The OECD, the rich nations' research organization, says Canada gathers just shy of 32 for each penny of GDP in assessments of various types. Along these lines, if the PBO gauge of a conceivable $6-billion knock to GDP from the household cannabis industry is exact, add up to government income could be as high as $2 billion, significantly more than the $1 a gram got ready for the extract impose. 

Wiping out rivalry 

Obviously, a portion of that cash would as of now be streaming into government coffers in light of the fact that illegal income additionally advances into the legitimate economy. Making precise computations is troublesome, however approach investigator Rosalie Wyonch says the lawful pot assess income from such things as business and salary duties will be huge. 

"We can state that it's more considerable than the extract charges," says Wyonch, who has composed strategy counsel on legitimate pot for the C.D. Howe Institute, a Canadian research organization. 

She says one of the key things’ governments can do to expand income is to keep costs low, in any event for the initial couple of years, to enable wipe to out the unlawful rivalry. She says the higher the legitimate costs, the more business will be left in the hands of the unlawful market.

With the legalization of cannabis, the Canadian government and its provinces should enjoy a huge influx of cash as the industry catches up to demand and people are willing to purchase their pot legally. If this is done right, and the government doesn’t get overly greedy, we could cash-in on this booming industry.

Now that Pot is Legal, Start Your Cannabis Business the Right Way

By Randall Orser | Budget , Business Income Taxes , Sales Taxes , Small Business

Is it accurate to say that you are hoping to cut out a bit of the cannabis business for yourself? Nobody can point the finger at you, there is by all accounts boundless potential for making immense benefits in this segment, one of the quickest developing on the planet, as per statistical surveying firm Arcview. Information from the 2016 Cannabis Business Factbook appeared around 90 percent discount cultivators., recreational cannabis stores, and imbued item organizations - the three mainstays of the weed exchange - were either equaling the initial investment or tun1ing a benefit. Among those, percent of imbued item organizations and 29 percent discount producers depicted their organizations as very gainful. 

The potential market is gigantic; therapeutic weed is legitimate now and recreational cannabis will be in October 2018, which implies Canada is open for business with regards to cannabis; however, a few Provinces will no uncertainty endeavor to demolish it. 

The business development, in the United States, has been similarly as amazing: $6.7 Billion of every 2016, a 30 percent expansion from the earlier year, and about $10 billions of every 2017. Arcview ventures that deals will hit $20.2 billion by 2021, which works out to an eye-popping yearly compound development rate of 25 percent. Inevitably, weed could match brew in deals, as indicated by the 2018 Cannabis Business Factbook.

In spite of these salivation prompting figures, a tangle of befuddling controls, high assessments, and different obstacles anticipate planned financial specialists. To win and flourish, this is the thing that you have to do.  

Concoct a Unique Idea 

Much the same as in some other industry, having a one of a kind thought that fills a neglected need is basic for progress, that implies you have to do your exploration to get the bits of knowledge you have to produce appropriate thoughts and decide the division of this energetic industry that is justified regardless of your chance and cash. 

Most planned weed specialists ordinarily incline toward dispensaries and develop tasks; However, these two parts are, less secure and all the more firmly managed; subsequently they are less gainful. Edges are probably going to fall further as the lawful utilization of cannabis rises and prompts expanded rivalry. 

This is the reason you have to come up an interesting business thought. It is safe to say that you are a foodie? Think about putting resources into a line of consumable items. Is accommodation more your speed? Cannabis-accommodating cabin might be a decent speculation. Is fragrance-based treatment your strong point? Building up a scope of cannabis-based imbuements may hold the way to your prosperity. It is safe to say that you are increasingly the innovative sort? Concoct one of a kind items to enable clients, to state, ingest or process pot. 

In case you're keen on profiting from pot however don't need coordinate contact with the item you should need to consider offering subordinate administrations, for example, consultancy; security, and application making. This approach has another preferred standpoint; on the grounds that the main part of cannabis related controls (and expenses) target merchants, producers, and providers, giving subordinate administrations is normally more beneficial.
  • Affirm there is a business opportunity for your item or administration 
  • Give you the way to separate your items or administrations, basic as the business turns out to be progressively swarmed and aggressive. 
  • Help you adjust your contributions where essential 

When you begin your business, you should set aside opportunity to manufacture a decent association with your clients. Your prosperity relies upon it, cautions Krista Whitley, CEO of Las Vegas based cannabis aggregate Altitude Products. Lead consistent consumer loyalty studies and have a productive client contact procedure set up. 

Get (and Stay) Familiar with the Laws and Industry Best Practices 

You may have a triumphant thought and a responsive client base, however in the event that you don't play by the standards, you will get fines and correctional facility instead of benefits. Hence, you have to get up to speed with the laws and directions identifying with the business in your locale. 

There are, tragically, twisted, so you will more likely than not require the assistance of an accomplished lawyer to effectively explore them. Laws change by territory and nature of the business. A fastidious adherence to government, commonplace, and neighborhood directions can enable you to maintain a strategic distance from difficult issues. 

Controls will shift starting with one state then onto the next, which mostly clarifies their multifaceted nature. 

All in all, most areas limit the number or size of cultivators or dispensaries they can permit. What's more, they request high application charges and force stringent working controls, which incorporate strict administration and budgetary announcing necessities. 

Aside from keeping away from imprison time and fines, you likewise need to play by the standards to abstain from painting the business in an awful light What you do influences the notoriety of the business all in all, and rashness just helps the individuals who might want to see it gone. 

Since the business is as yet incipient and not completely managed, you have to consistently refresh yourself on changes to cannabis related laws in best practices; in addition to other things, get every single required permit) utilize the correct marking, effectively name your items, and utilize proper advertising and deals channels. 

Raise (Adequate) Capital 

Wanting to approach your bank for a credit to fund your fantasy business? Sadly, on the grounds that cannabis organizations work in a legitimate strange place, it's for all intents and purposes difficult to acquire financing from conventional budgetary foundations. Try not to lose hope as different alternatives do exist. 

Holy messenger financial specialists are one alternative. They have practical experience in high-hazard, exceptional yield interests in developing organizations. Aside from financing, these speculators additionally offer associations, mastery and even calculated help. Dissimilar to customary agents, who center only around productivity measurements, holy messenger financial specialists tend to likewise search for characteristics, for example, energy and responsibility.

Be that as it may, a can-do disposition all alone won't influence holy messenger financial specialists. You likewise should be sure about what sort of give you need, and back your pitch with numbers demonstrating why it is justified regardless of their chance and cash. You should likewise give evidence of individual and association capability. What's more, be prepared to wrangle. 

In the event that this sounds reminiscent of Shark Tank, it is on the grounds that the show comprehensively reflects what occurs in commonplace financial specialist pitches. Attempt to get on the program; on the off chance that you are effective, your business will get important attention regardless of whether you don't get a dime. 

Crowdfunding, another method for raising capital, can be generally effective if your thought reverberates with a wide group of onlookers. Pot centered crowdfunding stages incorporate 420fundme, Fundanna, CannaFundr. To expand your odds of progress, ensure your profile and showcasing are first rate, and that you have an influential strategy for success. Contingent upon your business objectives, you can either pick value crowdfunding or general, Kickstarter-style gift-based crowdfunding. In value crowdfunding, you give benefactors a piece of your organization as a byproduct of money; in general crowdfunding, sponsor get a reward, for example, a free item. With value crowdfunding, along these lines, you net financial specialists, while general crowdfunding can enable you to manufacture a client base. 

You can likewise get standard business advances from elective agents, for example, National Business Capital, Green Leaf Money, GoKapital, and Diamond Business advances. They give everything from business credit extensions for everyday costs to term advances for huge, one-time costs. Contributions and prerequisites differ; for example, National Business Capital surrenders advances of to $5 million, however just loans to organizations with a yearly wage of in any event $180,000 and a FICO assessment of 680 or higher. GoKapital, interestingly, does not have least FICO rating necessities, but rather organizations must have a month to month income of at any rate $10,000 and no less than four months of business ledger proclamations to be qualified for credits. 

Individual advances are another wellspring of assets in the event that you have a strong record of loan repayment. These are accessible from credit associations, banks, and online loan specialists. Home value credits are likewise a fantastic financing alternative if your home has generous esteem. 

Final Thoughts 

Regardless of the difficulties there is apparently no better or all the more energizing time to put resources into the business. Its embryonic nature can show numerous vulnerabilities, however that nascence additionally limits rivalry and potential for huge benefits. For whatever length of time that you have a special thought that meets an unfulfilled need, comprehend your clients, play by the principles and raise enough capital, you ought to have an incredible shot at eye-popping achievement. Good fortunes!

Is it Time to Register for GST/HST?

By Randall Orser | Sales Taxes

This is one question I get asked a lot by new businesses, whether or not they should register for the GST/HST.  I usually say ‘Yes’ so you get used to charging it and your customers get used to paying it.  We’ll talk about what is the GST/HST and when do I register for it.  If you’re incorporated then it’s a definite ‘yes’ to registering as you went to the bother of incorporating, you may as well collect GST/HST.

What is GST/HST?

GST stands for Goods and Services Tax and HST stands for Harmonized Sales Tax. The HST is where a province has merged its provincial sales tax (PST) with the GST. In Ontario, that province merged it’s 8% PST with the GST and made an HST of 13% (the provincial portion was lowered by 2% points). Note, the GST and HST are the same tax, just different percentages, and you remit them at the same time on the same form.

The GST is a tax that applies to the supply of most property and services in Canada. Generally, the HST applies to the same base of property and services as the GST. In some participating provinces, there are point-of-sale rebates equivalent to the provincial part of the HST on certain items.

Although the consumer pays the tax, businesses are generally responsible for collecting and remitting it to the government (Quebec administers its GST/HST). Businesses that are required to have a GST/HST registration number are called registrants. Registrants collect the GST/HST on most of their sales and pay the GST/HST on most purchases they make to operate their business. They can claim an input tax credit, to recover the GST/HST paid or payable on the purchases they use in their commercial activities.

When do I register for GST/HST?

Generally, you don’t have to register if you’re worldwide sales are less than $30,000, unless you want to be able claim for any GST/HST you paid out to suppliers. You should be looking at the past 4 quarters of sales and if at any time it’s coming close to $30,000 then you should register. For example, if you find that your sales are at $30,000 by the end of June, then you need to register; however, if it’s December 28th, then you probably won’t have to register.

If you’re starting a business and expect to make a lot of supply or equipment purchases then you need to register for GST/HST as soon as your business name is approved and registered, and, definitely, before you buy anything for the business. I have seen so many people get excited about their new enterprise that they go crazy buying stuff and then realize they should register for the GST/HST. Of course, once you’ve bought stuff it’s too late, and CRA won’t backdate your GST/HST registration unless you’ve been invoicing customers (you’ll have to prove that you’ve invoiced customers).

There are situations where you don’t register as you’re selling an exempt product/service, such as insurance or a financial planner. In this case, you can’t register, would not charge GST/HST, and cannot claim any input tax credits either.

Another situation when it’s best to register from the start is when you buy an existing business, or part of a business. When a business sells to another business then the businesses can opt to elect that the GST/HST does not apply to the supply of the business. You would file form GST44 - Election Concerning the Acquisition of a Business or Part of a Business and send that in with your first GST/HST return after acquiring the business. If you’re GST/HST return is filed electronically then just send the GST44 into your tax centre.

If you’re mostly business-to-business sales then definitely register as businesses are used to paying GST/HST, and they know that if you’re not charging GST/HST then you’re making less than $30,000 and that you’re a new business. For business to consumer, it’s a bit more difficult as consumers’ hate paying tax and will sometimes go to great lengths not to pay it. In the end, I still think it’s best to register for GST/HST as your goal is to have a business and this makes you look more professional.

Have You Made Your Tax Instalments This Year?

By Randall Orser | Sales Taxes

You may be a self-employed person, and if you end up owing more than $3,000 in income taxes, then you will have to make instalments the next year. Other than the self-employed person who has no tax taken off their income during the year, there are reasons why you may owe tax come April 30th. This can happen if you earn income from rentals, investments, certain pension payments, or income from more than one job. If you have more than one job, you are only allowed to claim your exemptions on one job; the other jobs you should claim zero (0).

There are two factors to consider when determining if you have to pay tax by instalments: 1) your net tax owing; 2) your province or territory of residence.

You have to pay your income tax by instalments for 2017 if both of the following apply:

  • your net tax owing for 2017 will be above the threshold for your province or territory ($1,800 or $3,000)
  • your net tax owing in either 2016 or 2015 was above the threshold for your province or territory

You do not have to pay your income tax by instalments for 2017 if your net tax owing for 2017 will be $3,000 or less ($1,800 or less for residents of Quebec), even if you received an instalment reminder in 2017.

If you received an instalment reminder that shows an amount to pay, you may have to pay your income tax by instalments.

If your main source of income in 2017 is self-employment income from farming or fishing, you must make an instalment payment if both of the following apply:

  • your net tax owing for 2017 will be above the threshold for your province or territory ($1,800 or $3,000)
  • your net tax owing for 2016 and 2015 was above the threshold for your province or territory ($1,800 or $3,000)

Your province or territory of residence will determine the threshold of net tax owing you will use when determining if you have to pay tax by instalments. If you live in Quebec on December 31 of a year, use a limit of $1,800 of net tax owing. If you live in any other province or territory on December 31 of a year, use a limit of $3,000 of net tax owing.

What is an instalment reminder?

An instalment reminder is sent to help you determine if you have to pay income tax by instalments. The reminder will suggest an amount to pay and list the calculation options.

CRA sends instalment reminders to people who may have to pay tax by instalments:

  • The February reminder is for the March and June payments
  • The August reminder is for the September and December payments

If you only received an August reminder, and the reminder does not mention a March or June 2017 instalment payment, follow the instructions that apply to you:

No-calculation option – Pay the amount shown in box 2 of your reminder for September 15 and December 15.

Prior-year option – Calculate your 2016 net tax owing and add any CPP contributions payable, and any voluntary EI premiums payable. Pay 75% of the total on September 15 and 25% on December 15.

Current-year option – Estimate your current-year 2017 net tax owing and add any CPP contributions payable, and any voluntary EI premiums payable. Pay 75% of the total on September 15 and 25% on December 15.

If you received an instalment reminder and you are required to pay instalments but do not comply, you may have interest and penalty charges.

You can also see your instalment reminders online using My Account.

Instalment interest and penalty charges

You will be charged interest if all of the following conditions apply:

  • CRA sends you an instalment reminder in 2017 that shows an amount to pay
  • you must pay by instalment in 2017
  • you did not make instalment payments, or you made payments that were late or you paid less than what you had to pay

CRA charges instalment interest on all late or insufficient instalment payments. Instalment interest is compounded daily at the prescribed interest rate, which can change every three months.

How does CRA determine the interest?

  1. CRA calculates interest on each instalment payment that you should have paid from the day it was due to your balance due date based on the payment option that results in the least amount of interest.
  2. CRA calculates the interest on each instalment you paid for the year starting from the later of the date the payment was made or January 1 up to the balance due date.

Then, they determine the interest you owe by charging the difference between a. and b., if the difference is more than $25.

Instalment penalty

You may have to pay a penalty if your instalment payments are late or less than the required amount. CRA applies this penalty only if your instalment interest charges for 2017 are more than $1,000.

To calculate the penalty, CRA determines which of the following amounts is higher:

  • $1,000
    or
  • 25% of the instalment interest that you would have had to pay if you had not made instalment payments for 2017

Then, CRA subtracts the higher amount from your actual instalment interest charges for 2017. Finally, CRA divides the difference by two and the result is your penalty.

As you can see, it is definitely worth it to make your instalment payments if you get any kind of instalment reminder from CRA. If it’s your first year being self-employed, and you know you’ll owe more than $3,000 come February, for the following year you’ll want to make those instalment payments in March/June/September/December. In the end, paying by instalments does relieve you of that huge bill come April 30th.

Nine Simple Ways to Avoid a Grueling Tax Review

By Randall Orser | Sales Taxes

Undergoing a tax review is one of the most frightening and harrowing experiences any adult can endure.  A tax review probes deep into financial and personal matters, and if errors and omissions are discovered in tax returns, the result can be imprisonment or a fine, possibly both.  More frightening still, the aftermath of tax evasion can be just as harsh for innocent mistakes as serious attempts to defraud the authorities.
So, what can an honest citizen do to prevent a tax review?  For starters:
1.  Take your time completing your accounts and preparing your tax return.  Rushing to meet an imminent submission deadline is a major cause of mistakes and omissions, and subsequent harsh punishment.
2.  Complete your accounts and prepare your tax return when you’re wide-awake and free from distractions.  Children playing noisily in the background, customers demanding your attention, falling asleep at your desk, all can lead to errors and ambiguities and a subsequent visit from the taxman.
3.  When you think your accounts and tax returns are problem free, put all your paperwork to one side, preferably at least four weeks before the final date for submitting tax returns.  A week later, study your figures; check your calculations, correct errors you didn’t spot earlier, enter details you overlooked previously.  Check again two weeks before tax submission deadline, and if all looks good, submit your return right away.
4.  Get a certificate of posting for submissions by post, make a screenshot of returns processed online.  Then when your return goes missing in transit, you can prove you submitted on time, and avoid a potential tax review.
5.  Submit your tax returns on time, every time.  Submitting late might suggest you rushed your submission, and possibly made mistakes.
6.  If you don’t use an accountant, consider getting one, preferably with expertise in your area of business and on good terms with the tax authorities.  Search online for someone with a good reputation for filing submissions on time and without making mistakes, as well as for signs an accountant may have been jailed or expelled from a professional association for fraud or misconduct. Key the name of a potential accountant into the search box at google.com, then study the first three or four pages of search returns where most derogatory entries are likely to be found.
7.  If you submit something unusual in your tax returns, such as a major drop in income or an unusually high expense, explain it in a note accompanying your return or in the appropriate location on your submission form.   The more you tell the taxman, the less likely a review will be opened to determine reasons for gaps and irregularities in your tax return.
8.  If paper filing, prepare your submission on a photocopy of the official tax return form before preparing your final return.  Alternatively, use pencil on the original form so errors and ambiguities can be edited later.  Lots of deletions and amendments to an original form suggest a disorganized individual, and potentially more mistakes for the taxman to find.
Hopefully, you’re electronically filing your return. If so, then review the return before you file and print a copy of the confirmation as proof you filed your return.
9.  Add tips and cash payments, also barter transactions to your declared earnings, so the taxman doesn’t feel obliged to ask about income you may have overlooked or considered tax-free. If doing barter, exchange invoices so you have an audit trail.
For the record, almost every form of income should be declared on your tax return, except income from sales of personal goods.
All this time and effort spent preparing your tax return shows you are an honest and law-abiding citizen, someone who does not deserve special attention from the authorities.