Question Accountant

[SumYang_KUM]

For spa owner, % of use going 2 & returning from spa= deductions…

I don't think so. Please check with your Accountant

There are any other factors to take into account: proprietorship vs. corporation, how the company pays employees, company car usage for employees, however, that is a benefit for employee that has to be declared, etc.... So what about all the cash transactions at flea-markets when merchants don't give you Receipt ? and the list go on...

 

[Happyman]

For the technical part, the best is to leave it to a professional accountant (I am not). To summarise our thought, there are many who take advantage of honest system and do not pay their fair share of taxes. However, due to many loopholes and lack of manpower, CRA may has his hands tied. We can do our part by paying taxes in an honest way. On the other hand, it's wise to have tax planning and advice from a professional accountant to minimise tax paying legally.

 

[Deleted member 73937]

Tax evasion is a serious crime with serious consequences

Tax evasion is a crime. Tax avoidance is a divine right and an art

 

[Avoid_SeductionSpa_RipOff&STDs]

Tax evasion is a crime. Tax avoidance is a divine right and an art

I dont dispute that...just don't get caught.

 

[xtc27]

For spa owner, % of use going 2 & returning from spa= deductions…

I don't think so. Please check with your Accountant

Me ≠ spa owner… but whole mileage back&forth from place of work = deduction for small biz owner & self-employed … keep log books so u have track of km… calculate % of total use… say 30%

Deduct 30% of vehicle expenses.

… all self employed can do this… dude, my accountant did this! CRA approved…

… u don’t do this, CRA don’t care… but u just paid 2 much tax…

Here’s TurboTax link:

I'm self-employed, how do I claim vehicle expenses?

If you used your vehicle to earn self-employed income, then you're eligible to claim vehicle expenses. These expenses can then be used on your tax return to reduce the amount of taxable business income you earned. While you may not claim the total amount of your vehicle expenses, you may be...

turbotax.community.intuit.ca

.

 

[Jimy21]

Like it or not, if you are employed and on pay roll , you will get bent over every year.

There is no way you can track down every cash transaction businesses like spas, hair salons, restaurants, small construction companies ,small contractors, small paving companies and such. I do know of some bigger spas with lots of credit card transactions show over 2-300 thousands a yr income and they have been in the business for so many years. Most accountants know what to hold and what to show. Small spas are too small of a fish for the government to be bothered. Every business doing lots of cash transactions will always cheat no matter what business it is. Even our ex PM Brian Mulroney tried to hide $300K cash , why can't the small businesses?

CRA does random audits every year on small businesses and it's not difficult for them to figure out if taxes have been avoided by using the tools and technology available to them.Trust me once they determine that taxes have not been filed properly they act swiftly and hit hard.

 

[Happyman]

Me ≠ spa owner… but whole mileage back&forth from place of work = deduction for small biz owner & self-employed … keep log books so u have track of km… calculate % of total use… say 30%

Deduct 30% of vehicle expenses.

… all self employed can do this… dude, my accountant did this! CRA approved…

… u don’t do this, CRA don’t care… but u just paid 2 much tax…

Here’s TurboTax link:

I'm self-employed, how do I claim vehicle expenses?

If you used your vehicle to earn self-employed income, then you're eligible to claim vehicle expenses. These expenses can then be used on your tax return to reduce the amount of taxable business income you earned. While you may not claim the total amount of your vehicle expenses, you may be...

turbotax.community.intuit.ca

.

but whole mileage back&forth from place of work = deduction for small biz owner & self-employed

I talked to a CRA officer, driving to work does not count. Driving to see a client or a meeting, yes. Check with your Accountant. In the video, it asks you the part of expenses related to business but gives no info as what qualify for business expenses.

 

[krayjee]

CRA does random audits every year on small businesses and it's not difficult for them to figure out if taxes have been avoided by using the tools and technology available to them.Trust me once they determine that taxes have not been filed properly they act swiftly and hit hard.

I was in business for 32 yrs. I got audited only once and the lady didn't even know what to look for regarding my business. I had to show her a few things what she has to look for. My business is in Markham Chinese neighborhood and we had to do lots of cash business otherwise we lost out to competitions. "We pay you cash no tax ok" is their way of bargaining. Sometimes we have no choice, we have to take some cash and some checks. Average transaction is about $25K, so hiding a few thousands is no big deal. The only way they can stop tax cheating is to change into cashless society like Sweden. That will kill lots of small businesses.

 

[xtc27]

but whole mileage back&forth from place of work = deduction for small biz owner & self-employed

I talked to a CRA officer, driving to work does not count. Driving to see a client or a meeting, yes. Check with your Accountant. In the video, it asks you the part of expenses related to business but gives no info as what qualify for business expenses.

Employees can’t I thot… but mpas = temporary & multiple workplaces. So they can! Huh. Surprised me.

Business owners can’t deduct commuting… but if yer on standby 4 outcalls & picking up mpas 4 work… different story. Plus, spa can own vehicle & hire mgr as driver…

… creative accounting … but no more creative than my own avg everyday accountant…

 

[Avoid_SeductionSpa_RipOff&STDs]

Me ≠ spa owner… but whole mileage back&forth from place of work = deduction for small biz owner & self-employed … keep log books so u have track of km… calculate % of total use… say 30%

Deduct 30% of vehicle expenses.

… all self employed can do this… dude, my accountant did this! CRA approved…

… u don’t do this, CRA don’t care… but u just paid 2 much tax…

Here’s TurboTax link:

I'm self-employed, how do I claim vehicle expenses?

If you used your vehicle to earn self-employed income, then you're eligible to claim vehicle expenses. These expenses can then be used on your tax return to reduce the amount of taxable business income you earned. While you may not claim the total amount of your vehicle expenses, you may be...

turbotax.community.intuit.ca

.

Deductions against falsely reported earnings? Bahahahahaha

 

[xtc27]

Deductions against falsely reported earnings? Bahahahahaha

So, lil dude… yer intentionally incredibly comically naive? Or actually a young teen?

… this post, fuck, literally tearing up & laffing so hard!

Anyway, if yer actually just a kid, come back in 20 yrs & reread yer stuff… pretty classic ..,

Otherwise, geez, hilarious!

 

[hangul99]

For mpa… dunno. If they’re self-employed, they can, if not, they can’t.

For spa owner, % of use going 2 & returning from spa= deductions… same as any business owner… & if u pick up girls & bring them, like Renee did (does?) for Coco, totally a deduction.

% of non-biz use, not a deduction.

Key= keeping log books of yer mileage… er, actual car mileage, not spa mileage <g>

Driving to and from your place of employment even if you are self employed is not deductable. Look it up on the CRA website.

 

[Avoid_SeductionSpa_RipOff&STDs]

I was in business for 32 yrs. I got audited only once and the lady didn't even know what to look for regarding my business. I had to show her a few things what she has to look for. My business is in Markham Chinese neighborhood and we had to do lots of cash business otherwise we lost out to competitions. "We pay you cash no tax ok" is their way of bargaining. Sometimes we have no choice, we have to take some cash and some checks. Average transaction is about $25K, so hiding a few thousands is no big deal. The only way they can stop tax cheating is to change into cashless society like Sweden. That will kill lots of small businesses.

Stop downplaying the tax avoidance crimes you and your clients are committing and writing it off like its nothing.

 

[xtc27]

Driving to and from your place of employment even if you are self employed is not deductable. Look it up on the CRA website.

Yup… fer u & me…

But… Small biz owner, all cash deals, can add all kinds of entries 2 a log book saying delivering girls & picking them up… trivial example…

CRA accepts log book entries as facts, even tho could b completely or partially fiction…

All on CRA website… as my accountant showed me… ofc I ride a bike everywhere, don’t help me much… but a small biz, mostly cash… u can say u did biz anywhere, just make log entries… even in Chinese…

But yeah, biz owner can’t say commuting… that’s no gd w/o more details…

 

[Frank Underwood]

Very happy ones…

…so my accountant goes, oh, u bought a computer? Thats deduction… but its 4 my son? Its ok, no problem, its deduction… & more & more imaginary deductns…

So, c’mon, all u dreadfully honest folk out there… this aint my personal accountant… he does same 4 all his clients… nobody called cops on him yet…

Do taxes 4 spa, & there so many flexible fun ways spa can take payment 2u … & u dont hafta make 2 many questionable deductions… if some cash income isnt reported… guess what? Accountant only reports on numbers in front of him…

Same as every small business, many cash transactins go unreported…. So the fuck what…

These are registered business like any other business.

It's no different than a Lawyer. They do the service, you pay and that's it.

 

[Jimy21]

I was in business for 32 yrs. I got audited only once and the lady didn't even know what to look for regarding my business. I had to show her a few things what she has to look for. My business is in Markham Chinese neighborhood and we had to do lots of cash business otherwise we lost out to competitions. "We pay you cash no tax ok" is their way of bargaining. Sometimes we have no choice, we have to take some cash and some checks. Average transaction is about $25K, so hiding a few thousands is no big deal. The only way they can stop tax cheating is to change into cashless society like Sweden. That will kill lots of small businesses.

I said CRA does random audits on small businesses every year. I didn't say that they go after every small business entity. There are more than 30k corporations in ON alone. The important thing to note is once you are caught evading tax than there is no turning back. It would be misleading to say that one can get away without paying taxes. But again it's a free world. I'm not here to change your perception about what is right and what is wrong.

 

[MalikFarush]

I was in business for 32 yrs. I got audited only once and the lady didn't even know what to look for regarding my business. I had to show her a few things what she has to look for. My business is in Markham Chinese neighborhood and we had to do lots of cash business otherwise we lost out to competitions. "We pay you cash no tax ok" is their way of bargaining. Sometimes we have no choice, we have to take some cash and some checks. Average transaction is about $25K, so hiding a few thousands is no big deal. The only way they can stop tax cheating is to change into cashless society like Sweden. That will kill lots of small businesses.

Those businesses that would be killed have absolutely no business continuing to exist.

 

[Hornet]

Stop downplaying the tax avoidance crimes you and your clients are committing and writing it off like its nothing.

Tax avoidance is not illegal. It is understanding the Tax Laws and navigating them within the rules.

A simple example is a TFSA (Tax Free Savings Account) If you earned interest, dividends or had capital gains in a regular account it is subject to taxes. If you contributed to a TFSA and earned interest, dividend or capital gains there then they are not taxable. You avoided taxes in a very legitimate manner.

More complex is gifting vs. Inheritance. If the last remaining parent dies, inheritance is taxable. But there are ways, and rules to be followed, whereby assets can be gifted before death and avoid taxes and those are completely legal after employing the services of a good tax lawyer / tax specialist.

 

[Deleted member 73937]

I dont dispute that...just don't get caught.

You are showing your limited understanding of the Income Tax Act. There is nothing to get caught at. The Act encourages tax avoidance. Why? Because it is a document written by the rich for the rich. I have a relative who makes multiple millions of dollars every year and pays less tax than everyone in this forum. Colour me shocked. Its just the way it is.

 

[Avoid_SeductionSpa_RipOff&STDs]

Tax avoidance is not illegal. It is understanding the Tax Laws and navigating them within the rules.

A simple example is a TFSA (Tax Free Savings Account) If you earned interest, dividends or had capital gains in a regular account it is subject to taxes. If you contributed to a TFSA and earned interest, dividend or capital gains there then they are not taxable. You avoided taxes in a very legitimate manner.

More complex is gifting vs. Inheritance. If the last remaining parent dies, inheritance is taxable. But there are ways, and rules to be followed, whereby assets can be gifted before death and avoid taxes and those are completely legal after employing the services of a good tax lawyer / tax specialist.

Lol, You're an idiot. Obviously there is a distinction between legitimate and legal ways ways to avoid tax vs. Illegal avoidance. So You're are telling me avoiding and evading taxes by falsifying sales/income, withholding gst/pst is legal? You do realize you can go to prison for ripping off the CRA.