File your returns on time. CRA will assess interest from the point at which tax was due regardless of your filing date; however CRA will assess late penalties and fees for late filed returns. CRA’s 2009 prescribed interest rates can be found at:

http://www.cra-arc.gc.ca/nwsrm/rlss/2009/m03/nr090304-eng.html.

If your cash flow won’t allow a payment, separate the return and payment. File your return on time and make payments as your cash flow allows. CRA’s interest rates for 2009 were more affordable than some bank loans. Late filing fees can be 50% of any amounts owing, so watch out.

Summit Certified Management Accountants specialize in accounting for Small and Mid-Sized business in Durham. We can help you stay in compliance and out of trouble. We can recommend strategies to minimize your tax burden while providing peace of mind. We take the time to understand your unique situation and work with you to improve cash flows, lower expenses and minimize taxes. Call us for help with your Personal Taxes, Corporate Taxes (T2), Bookkeeping and Payroll needs. We help clients in Pickering, Ajax, Whitby, Oshawa and Toronto.

Firstly, let me say that all of the Financial Advisors that I know are extremely ethical.  However the recent Earl Jones and Bernie Madoff tragedies in the news have highlighted where clients have placed too much trust in their investment advisor. Doing your own taxes or having them completed by a third party, gives you a chance to examine your statements to ensure your instructions are being followed, your statements are bona fide and activity is normal.

Depending on your objectives, your investment strategy may be very conservative or aggressive.  Conservative investors should look for more fixed income investments and dividend paying blue chip stocks.  More aggressive strategies may be more heavily weighted by industry sector and skewed to equities. Take a moment when you receive your statements to ensure they were sent by the custodian or mutual fund companies.  Look at the envelopes they were received in, look for letterhead and other clues that the documents are genuine.  Too many people do not look at their statements.  In the Madoff and Jones cases they placed their faith and future entirely in the hands of their advisor.

A professional accountant is up to date on their tax legislation (we have mandatory training), has completed a university-level tax program, has experience working with clients like you and can identify problems early. Most accountants will catch a doctored statement or spreadsheet.  Real statements have tonnes of disclosure, the right letterhead and come straight from the custodian.

Your accountant can help you understand most tax planning strategies.  If someone says only your financial advisor can understand and report – watch out.

“If it seems too good to be true, it probably is.”