Back Taxes: Estimated tax bills / notional assessments
What are Estimated tax bills / notional assessments
CRA is not a proponent of individuals not filing tax returns. This is not recommended procedure. If you don’t file your tax return, CRA does not know what your tax payable is. So CRA will estimate / provide a notional assessment for back taxes owed. This estimate can be based on tax slips the CRA has or based on prior years’ tax returns. The risk with the estimated tax bill is that it could be way off the mark. It will most likely be incorrect and excessively high. CRA does not want to under-estimate the tax bill; they want to maximize the back taxes owed.
As a result of not filing your tax returns and accurately calculating your tax payable, CRA will decide this for you with an estimated tax bill. The next steps are to start back tax collection activities. This can be a step in the wrong direction because CRA will be attempting to collect a back tax tax bill that will most likely be erroneous. Having your wages garnished based on an incorrect back tax assessment can be frustrating.
What do you do about a Notional Assessment?
The best defence against the notional assessment / estimated tax bill is filing your overdue tax returns. This will generate a new re-assessment based on your filed tax returns. After having Tax Doctors Canada prepare your returns, you will have an accurate tax bill. This will usually be substantially lower that CRA’s back tax estimate. Another good reason for completing your tax returns on a timely basis is to avoid a notional assessment; this will keep your tax assessments accurate and not estimated.
Tax Doctors Canada has been serving happy clients for over 20 years. Our accountants will file necessary tax returns and get the CRA to adjust the notional assessment. Tax Doctors Canada has an outstanding record of success with the CRA regarding back tax issues.
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.
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.