Busted! Don’t Believe These Tax Myths!
There’s no doubt that understanding the Income Tax Act can be confusing and complex. And with several new rules and regulations being introduced every year, it’s not surprising that most people easily fall prey to misleading information designed by unscrupulous individuals who stand to profit considerably.
To prevent yourself from falling for false information about myths, it’s best to get the help of an experienced and licensed tax accountant. They will educate and clear up any misinformation and misunderstandings and ensure your taxes are paid in full and on time. But, until you find the perfect accountant to help you out, Number Crunchers has dispelled three of the most widely believed myths about tax.
Myth 1: I’m a natural person
A few years ago, in the courts, there was a case where someone declared they were a “natural” person or human being, and the Income Tax Act (ITA) only applies to corporate entities. The court rejected this “natural” person argument. The court stated that the ITA’s definition of ‘person’ includes both natural and artificial. Needless to say, this ‘person’ is now in jail and had his taxes owing doubled.
Myth 2: Canada Revenue Agency (CRA) uses email to communicate
This is not true! CRA does not conduct “e-audits” via email! Know that the CRA does not notify taxpayers about pending audits via email, nor does it conduct “e-audits.” Taxpayers should never respond to a request for confidential information without first confirming the identity of the requestor and assuring themselves that the requestor is legally permitted to request such information.
Myth 3: I’m exempted from GST or HST
No one is exempt from GST or HST unless they are a Status Indian under the Indian Act and only in certain cases. Anyone carrying a card to “prove” any other exemption claim is committing fraud. One can’t exempt themselves from paying the GST or HST. Doing so will lead to penalties and even jail time.
If you’re looking to steer clear of more myths like these, reach out to Number Crunchers. As a seasoned tax accountant, preparer, and bookkeeper in Surrey, BC, I have completed over twenty years in the accounting sector and have given to small and home-based businesses the highest standard of service while building long-lasting relationships with them. I offer consistent and reliable services and ensure my clients are armed with the necessary information to run their business successfully. My accounting and bookkeeping services are extended to clients across Surrey, Burnaby, Delta, White Rock, Langley, Abbotsford, Coquitlam, Port Coquitlam, Maple Ridge, Mission, Vancouver, North Vancouver, West Vancouver, and the surrounding areas.