| Tax Helper by Tony Copple, CFP.
There are two types of taxes: those that are resented, and those that are really resented Most of us pay too much tax. More than even the government requires. Which, in a highly taxed country like Canada is a LOT! For the first time in 1999, many Canadians were able to file 1999 tax returns over the Internet using Canada Revenue Agency's (CRA)'s Netfile service. If you are eligible, you will receive an access code and information with your tax return package. Use Netfile-approved commercial tax prep software (eg QuickTax) to complete your return, then use Netfile to transmit it. Only straightforward returns can currently be netfiled. I am now using U-File tax prep software and find it very good. Nothing to pay or download till you are ready to Netfile or print. If you are self-employed and did not file by April 30, and owe taxes, you will not be charged a late fee (5% of the total owed) if you file before June 15. You will be charged interest on what you owed since April 30. This concession also applies also to spouses of self employed taxpayers.
If you are a Federal Government employee, you have access to detailed information about
your rates of pay and at One way to reduce personal taxation in Canada is to have your own business "on the side". This allows you deduct expenses, which can reduce taxation from your "day job". There are limits to how far you can take this, and you should be aware of CRA's rules for taxation of proprietorships and partnerships on the side, particularly in their early years. If you run a business, you would probably benefit from advice from an accountant at the beginning of your fiscal year so as to know how to structure your business to minimize tax. If you have investments you may be effectively running a business even if you don't realize it, and certainly may be able to reduce taxation. As a financial planner, I can give you basic tax planning advice. Your accountant can also prepare your tax return. If you are an employee, you may be perfectly competant to do your own tax return, particularly if you use U-File or QuickTax (or similar) software. However, a tax preparation service will probably still save you more than it costs you, and give you the peace of mind of knowing that you aren't missing anything.
Some more complex tax areas
Here are some helpful sources for accounting and tax preparation:
CRA telephone help lines: Employees: 800-959-8281; Self-employed: 800-959-5525. Charities Directorate: 800-267-2384 Netfile telephone help line: 800-714-7257 CPP and EI rates for employee and employer from 2004 > present
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