Tax Tip Thursday

Once again, we are here to talk about MyCRA and MyBusiness accounts.

We have been having a lot of trouble accessing peoples’ accounts already, and we are still very early in the tax season. This is not a good omen!

I have created a separate post with specific instructions (complete with pictures) on how to set these up properly. Click here to see them.

Why is This So Important?

Personal

From a personal tax perspective, it allows us to download your tax slips at tax time. This is important because as you know, people lose their slips all the time. This will help us ensure that all of your income is accounted for.

It also allows either you or us to deal with the CRA if you are audited or reviewed. You/we can upload documents directly to them through your account.

If we do not have representation for you, we can NOT do anything with the CRA on your behalf. No phone calls, no uploading, nothing!

We can get access to your personal account much easier, but you STILL need to get access to your own MYCRA account.

Business

From a business perspective, it is a much bigger problem!

We literally can NOT complete your books or taxes properly without access to your CRA accounts. Save for the odd client, all clients have balances at the CRA which need to go on you balance sheet. If we do not have access to your CRA account we cannot get the correct balances. This could include payments, penalties, interest and assessments.

The impact of your balance sheet not being correct is that amounts could get charged to your shareholder account in order to balance the books.

The impact of that is that it affects your personal income and the amount of tax you pay!

It is totally a ripple effect.

The other BIG problem is that we cannot file your HST on your behalf. This is the one that is becoming particularly problematic of late.

The CRA has mandated effective Jan 1, that you HAVE to file your HST online! YOU CAN NOT FILE HST WITH PAPER ANYMORE.

The reason that is a big problem is for businesses that have fallen behind in their business and/or personal taxes. If your taxes are not up to date, it is problematic to get access to your own account, meaning you cannot give us access either.

Short story – YOU HAVE TO HAVE ACCESS TO YOUR CRA BUSINESS ACCOUNT IN ORDER TO GET YOUR TAX PREPARATION COMPLETED.

How Do I Get Access?

I have created a brand new guide on how to do this, and you can see it here: How to Set Up MyCRA and MyBusiness

It is for your own benefit to do this!

Still Having Trouble?

We can help you get things set up properly if you’re having trouble with all this, or if you’re not sure about something. Book an appointment today to get started.

Disclaimer:

This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal or tax advice nor can it or should it be relied upon. All tax situations are specific to each individual. If you have specific tax questions you should book an appointment for a 1 on 1 consultation.