Greater Deals for the Perfect Tax Submission Now

It is a profit tax system for individual companies (EI) and EURL subject to income tax and whose manager is the sole partner. This tax system requires the submission of income tax (IR).

What is micro-enterprise?

The micro-enterprise regime is a tax system.

It does not correspond to a legal form of company such as SA, SAS, LLC, etc.
Characteristics of the micro-enterprise scheme

This regime is characterized by the following elements:

• VAT-based franchise up to a turnover of Dollar 82,800 or Dollar 33,200: companies do not charge VAT to their customers and do not recover VAT paid to their suppliers;

•  a standard deduction when calculating the company's profit or loss;

• simplified accounting and reporting requirements;

• no deficit possible: the individual farmer can not charge it on his overall income.

Conditions of application of this tax system
Who can benefit from the tax regime of the micro-enterprise?

Small individual enterprises (for example, traders in their own name, liberal professions, craftsmen). EURLs whose manager is the sole partner and who are subject to income tax. From the Tax agent Watson this is very important.

Are excluded by right:

• legal entities subject to income tax (IR) or corporation tax (IS): SARL, EURL, partnerships, civil companies for example;

• leasing of equipment or durable consumer goods;

• transactions carried out on a futures market for financial instruments (stock market transactions);

• non-profit organizations (associations);

• merchants of property, developers and builders, real estate agents.

Limit linked to the turnover

The benefit of this system is subject to the respect of a total amount of annual turnover realized by the company which varies according to the nature of the exploitation:

Plurality of commercial enterprises

If the same taxpayer operates several companies, the turnover of the different activities is tabulated to determine whether he can benefit from the micro-enterprise scheme. This rule also applies if the merchant actually operates a number of businesses that can be classified as distinct because of the autonomy of the clientele and the nature of the benefits.

Preferable Opportunities for the Income Tax Submission

The advance tax is a tax levied at the source by the Confederation on various returns of capital movableas well as certain insurance benefits. It is primarily a means of tax technique to fight against tax evasion, by encouraging the taxpayer to report to direct taxes his income taxed anticipatory tax and the wealth from which these revenues come.

Reimbursable under certain conditions (by charging the cantonal and communal taxes, or in cash), the withholding tax does not therefore constitute a definitive charge for taxpayers domiciled who meet their tax obligations. You can have the support of the Income tax Consultant Watson there.

The advance tax mechanism can be represented graphically as follows:
The advance tax mechanism

Real tax, the withholding tax is levied without taking into account the financial capacity of the beneficiary of the taxable benefit.

The tax rate is

•  35% for investment returns and winnings in lotteries;

• 15% on life annuities and pensions; and

•  8% for other insurance benefits.

The Swiss debtors of the taxable benefits are liable to tax (= taxpayers). They must pay the tax on the taxable benefit and transfer it to the recipient of the taxable benefit by deducting it from the amount they must pay.

The tax debtor must spontaneously advertise to the Federal Tax Administration, submit the required statements and vouchers, and at the same time pay the tax (so-called "self-tax" system).
A default interest is due, without summation, on the amounts of taxes still unpaid at maturity.

As a result of this, the advance tax will be refunded , under certain conditions, to taxpayers domiciled who receive the benefits imposed, who correctly fulfill their tax obligations.

The refund is in particular granted :

To legal entities with their registered office, provided that they regularly record as income the income subject to withholding tax (reimbursement made by the Confederation, more exactly by the Federal Tax Administration).

The beneficiary must submit an application for a refund of the withholding tax within three years after the end of the calendar year in which the taxable benefit is due.

Benifits for your Tax Return and the Complications

Submitting your income tax returns and paying your outstanding balance on time should simply be a priority. Otherwise, it will cost you a lot too much.

Penalties for late payment

It should be noted that if you do not pay your tax balance before midnight the Revenue Agency begins to charge daily compounded interest the following day, and continues to charge each day until you have paid what you owe.

The penalty for late filing

If you do not submit your 2013 personal tax return by the April 30, 2014 deadline, you will also be required to pay the late- filing penalty of 5% of your 2013 balance plus 1% of your balance for each full month in which your return is late, up to a maximum of 12 months.

If this is not the first time you are late, the penalty is higher; if the CRA has imposed a late filing penalty for your return, your late filing penalty for 2013 may be 10% of your outstanding balance, plus 2% of your balance for each month complete where your return is late, up to a maximum of 20 months. You will have the best support now from the Taxation Return Preparation Watson.

No benefit payments

Eligibility for several benefits, such as the  Child Tax Benefit and the GST / HST credit, is based on your income tax information as net income. If you file your tax return late, your benefit payments will stop because the RA will not know your eligibility status.

Tips for late taxpayers

Do not delay submitting your returns because you think you owe money or wonder if you can pay your balance in full. In this case, you only make things worse.

Instead, make sure you submit your returns by the April 30 deadline, even if you can not pay your balance in full. So, even if you have to pay interest on the outstanding balance, at least your benefit payments will continue and you will not have to pay the late filing penalty in addition to other penalties and interest.

Explore with the RA the possibility of staggering your payments or waiving penalties for late payment of your balance.

The Revenue Agency is pleased to make payment arrangements with taxpayers who can not pay the amount of income tax they owe before the deadline.

To submit an application to this effect, you must complete and mail Form, Taxpayer Relief Application. If you find yourself in this situation in April, do not panic. Simply contact the Canada Revenue Agency as soon as possible to resolve the situation.