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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.

Great Income Tax Submissions Solutions

In 2014, the tax authority imposed a penalty for late filing a tax return for 2012. The fine was not paid. Three and a half years later, the tax authorities applied to the court for a court order to recover this fine from me. Is it legal? how long the tax may apply to the court for the collection of a fine previously imposed?

Hello, Penalty collection occurs within 2 years. However, you are not charged a fine, but already a penalty for late payment of a tax debt.

Good morning, what documents do I need when filing a declaration to receive a tax deduction when buying a home?

To confirm the right to property tax deduction, the taxpayer submits to the tax authority: an agreement on the purchase of a dwelling house or a share  in it, documents confirming the taxpayer's ownership of a dwelling house or a share  in it - when building or purchasing a residential house or shares (s) in it. From the Income tax Consultant Watson this is the best deal that you will be having now.

an agreement on the purchase of an apartment, room or share  in them and documents confirming the taxpayer's ownership of an apartment, room or share  in them when purchasing an apartment, room or share  in them into ownership; an agreement on participation in shared construction and a deed of transfer or another document on the transfer of an object of shared construction to the developer and its acceptance by the participant of shared construction, signed by the parties, when acquiring rights to an object of shared construction (an apartment or room in a house under construction).

Documents confirming the taxpayer's ownership of a land plot or a share  in it, and documents confirming ownership of a residential house or a share  in it when acquiring land plots or a share  in them provided for an individual housing construction and land plots on which residential houses or shares  in them are located.

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.