Spring Growth: Learn How to Prepare Accurate, Audit-Proof Tax Returns

Are you comfortable with your level of tax knowledge? If not, you’re not alone; most Canadians admit that they don’t know enough, but still prepare their own taxes. Educate yourself this tax season to receive a larger refund, and arm yourself against time-consuming, expensive audits.

Nearly half of Canadians file their taxes without professional assistance—but statistics show that many lack knowledge on key taxation issues, which can lead to audits and smaller refunds. Focus on your Spring growth: educate yourself and use Essential Tax Facts to learn how to prepare more accurate returns for yourself, your family and friends before the April 30 deadline.

So far this season, the Canada Revenue Agency has received almost 30,000** tax returns for the 2017 tax year. Even more notable are the statistics that relate specifically to the tax filing habits of Canadians, according to a BMO Nesbitt Burns Tax Report.

Almost half of Canadians prepare their taxes without the help of a professional. This includes having a friend or family member complete the process on their behalf. What is concerning, is that many Canadians surveyed also admitted to significant knowledge gaps that could impact their ability to file accurate, audit-proof returns that take advantage of tax savings opportunities.

• 58 percent don’t understand how capital gains are taxed
• 62 percent lack insight on dividend taxation
• 33 percent don’t understand tax applied to charitable giving
• 25 percent admit they don’t understand the tax implications of the RRSP
• 36 percent are unfamiliar with the tax implications of the TFSA

If a large percentage of Canadians fail to have complete knowledge on these common taxation issues that are relevant to many taxpayers, then finding and appropriately claiming and documenting tax credits and benefits relevant to specific Canadians – like the Canada Caregiver’s Credit, or Veteran’s Benefit – becomes even more complex.

Thirty-five percent of Canadians rely on tax software to file their returns, but these programs do not replace the need for personal knowledge and education when there is so much at stake.

If you’re preparing taxes for yourself, or on behalf of your family and friends, it’s time to invest in your growth this Spring and begin educating yourself on Canadian tax issues. As the CRA’s audit practices are becoming increasingly aggressive, this is more important than ever! Essential Tax Facts, by Evelyn Jacks, ensures you make the right tax moves, and remain audit-proof, too. The book is available April 3 and you can pre-order it today at the special $30 price!

If you have career aspirations to become a tax preparer or tax advisor, or to advance your knowledge in these areas, take advantage of certificate courses like Introduction to Personal Tax Preparation, or a designation like DFA – Tax Services Specialist.

** as of March 23, 2018

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