12th April 2016

Most Canadians have already filed their tax returns this year, but perhaps not everyone; those who have self-employment income have until June 15 to turn in their tax reports – following several significant changes in how Canadians must organize their finances at tax time.

This year saw general income tax breaks for the middle class, and a rate hike for the top 1%. Families with children are able to claim additional expenses ($8000 for each child aged 6 and under, and $5000 for kids aged 7-16), and the child fitness tax credit is now refundable.

Other policies are coming to an end, with this being the final time that the Enhanced Universal Child Care Benefit will be in effect, as it is set to be replaced by a new, tax-free Canada child tax benefit. Income-splitting between spouses earning different income levels, for the purposes of averaging out those incomes so as to stay within lower tax brackets, is also on its way out after this tax season.

Additional upcoming changes have been announced for next year and more are surely on the way. The complex nature of taxation in the modern world means that predicting the future is hard – and tax returns for companies or diversified individuals are likely to be examined more closely from now on.

With the possibility of an official audit, enquiry, investigation or review hanging overhead if the government suspects there might be a wrong number or statement on a tax form, one could be forgiven for feeling anxious about getting through tax season unscathed, even on the strength of an entirely competent accountant.

With all the variables at play in the tax code, and the reality of human error to consider, it’s a relief to know that Audit Shield is available from Accountancy Insurance in Canada and beyond. Holders of Audit Shield can rest easy in the knowledge that even if the government does single them out for special attention, the resulting long hours of preparation work that their accountants will need to do for them will be covered by our policy. In short: We pay for any extra accounting work made necessary by government demands.

We’ve heard from countless accounting firms that Audit Shield makes a big difference when marketing their services to clients, who are grateful for the optional protection that this special form of insurance can offer. The fear and dread that accompanies tax season loses much of its potency when Audit Shield is bundled together with a professional accounting firm’s promise of quality service.

New years are traditionally the time of new beginnings, and a new tax year is an excellent time to recalibrate one’s finances. Smart structuring of investments, clear and organized record keeping, as well as a mature investment in stability and security are all hallmarks of a balanced move forward. 

Many people (and companies) are right now just one audit away from a massive and expensive headache. But with Audit Shield coverage provided by Accountancy Insurance, you can be on firm ground once again.

 

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