Back Taxes: Failure to keep Books and Records

To Busy for Tax Related Paper Work?

Business owners get very busy operating their businesses and understandably so. What you rather do? Run the business and make a profit or get stuck in some room doing paper work for the government? However, this could be a trap. CRA has a requirement to keep books and records. If you get audited, you can’t use the gambit of I didn’t keep any books or records as a defence. CRA requires that the taxpayer keep books and records for six years. The six year period starts at the end of the applicable tax year. CRA can request that the taxpayer keep records for longer than six years.

Taxpayers may also be subject to penalties in the following situations:

  1. The taxpayer fails to keep books and records
  2. The taxpayer does not provide CRA officials with access to the records, when requested
  3. The taxpayer does not provide CRA officials with information when asked

On a summary conviction, a taxpayer may be subject to imprisonment and / or a fine.  An Ontario resident pleaded guilty in the Ontario Court of Justice to one charge of failing to keep proper books and records as required by the Income Tax Act.  He was fined $16,500.

The Accountants at Tax Doctors Canada can help you ensure that your books are records are in proper order; consequently, protecting you from punitive CRA actions. Concentrate on your business; let Tax Doctors Canada take care of your accounting needs and reduce your taxes.

Do not hesitate any longer, call toll free at 1 855 TAX DOCS (855 829 3627) or use our convenient contact web form on this page for a free initial no obligation consultation for your personal and business back tax requirements. The professional accountants at Tax Doctors Canada can negotiate a settlement for you with the tax department and possibly save you interest, penalties and prosecution. There are Tax Doctors Canada locations in Mississauga, Toronto and Markham to serve you.

Request a Free Consultation Now!

Contact us using the web form below or call toll free at 1 855 TAX DOCS (855 829 3627) for a a free no obligation consultation. We have convenient locations in Mississauga, Toronto and Markham to serve you.





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