3 Red Flags for Tax Schemes Avoid them by partnering with a trusted, well-established tax accountant
As filing deadlines near, we naturally hear and see more ads for tax preparers. They’re inescapable. Selecting the right tax preparation professional for your needs only adds to a complex task. However, at Miranda Professional Corporation in Mississauga, Ontario, we remove the confusion and complexity from the process. We are truly the antidote to the following three features of tax schemes identified by the CRA. Your financial well-being is in excellent hands when you partner with an accountant who is invested in your goals, has the experience and skills you need, and isn’t going anywhere!
No. 1: If it seems too good to be true, it probably is.
The CRA defines tax schemes as plans/arrangements that promise a tax reduction owed through large deductions or tax-free income. Those individuals who promote or “sell” such schemes seek to break or bend our country’s tax laws. They knowingly make false statements – such as outsized returns on tiny investments – to assist clients in cheating the system. The only party who benefits is the promoter, who collects a portion of the projected refund as his or her “fee.” At MPC, we use proven legal practices based on more than 30 years of tax and accounting experience to reduce your liabilities through legitimate deductions, credits, and more. We do not overpromise and do not use questionable tactics to profit off or take advantage of our clients’ trust in us.
No. 2: Do not be vulnerable to costly penalties and other dire consequences.
By partnering with seasoned accounting professionals who navigate the ever-changing tax landscape, we help you avoid the many penalties that can cost you. These penalties often result from filing late/after the deadline, inaccuracies, and incomplete information and/or payment. We consistently file on time and with considerable attention to detail, which supports accurate and complete tax returns. On the other hand, tax schemes can result in additional taxes being assessed in addition to the fee you pay the promoter. If convicted of evading your tax obligations, you must repay the full amount owed as well as interest and civil penalties as determined by the CRA. Additionally, courts take these schemes very seriously; you may be fined up to 200% of the taxes (evaded) and even face jail time (a term of up to five years!).
No. 3: Don’t be tricked out of getting a second opinion.
The CRA also notes that scheme promoters/sellers naturally discourage second opinions. They may try the “hard sell” and seem very convincing, polished, and charming. At Miranda Professional Corporation, we do not need to resort to such tactics. The proof of our successes and professionalism is in the many satisfied personal and business tax clients who have partnered with us for three decades. Like our clients, we call the Mississauga, ON, area home and are proud business owners who are not going anywhere. You can even read about some of our clients’ successes on this website. As you see, we go above and beyond for our neighbours. As but one example, our professional tax reviews look much further into your past – ten years! Other tax professionals may only look at the previous and current years. But why would we not maximize this information when the CRA allows for adjustments for 10 years? We are always making the most of sound information, and we would never discourage valued members of our community from seeking out all the information they need to make decisions that are in the best interests of their financial health and well-being.
We welcome your questions and concerns! Phone +1 855-839-4969 today to speak with a member of our team.
