Ontario Income Tax

Home Business Tax Savings About Home Business Tax Savings Tax Reduction Products Home Based Business Contact Home Business Tax Savings  
Home Based Business
Tax Reduction

If you are self-employed and live in the United States or Canada, you can probably reduce your taxes with a small business run with an honest expectation of profit and where your expenses are ordinary, necessary, and reasonable for that business. It's that simple. Find out How to Reduce Your Taxes
Tax Links Tax Savings
Income Tax Returns Your Accountant Should Not File

You've been feeling uneasy (perhaps even guilty) because you've failed to report your under the table business income. Perhaps you've never filed a tax return, even though you know you owe money. Finally, you contact an accountant to resolve the situation.

Although it is commendable that you are trying to correct matters, hiring an accountant to do these delinquent returns could be a big mistake. The reason why is because tax evasion is a criminal offence or felony. You might also be subject to civil action.

Would you hire an accountant to defend you in a criminal proceeding? Not likely. You would be wise to hire a qualified attorney.

First of all, lawyers have something called solicitor-client privilege (also known as attorney-client privilege or legal advice privilege). This basically means that things you tell your lawyer when seeking legal advice are confidential and can't be used against you. Even written records can be covered by this privilege.

On the other hand, your accountant can be compelled to testify against you and all records in his possession can be demanded by the authorities.

Second, your lawyer can prepare a legally binding agreement that can protect you. In return for your coming clean, the tax authorities may agree not to charge you criminally and, in some cases, even reduce penalties or tax liability.

If your accountant tried to do the same thing, they could demand all information about you. Your accountant would not be protected by solicitor-client privilege.

If, say, your accountant filed your tax return from ten years ago on your behalf, the tax authorities could still charge you with tax evasion, despite the fact that you are obviously trying to rectify matters (albeit a bit late).

It is even possible that your accountant could get into trouble for failing to report your delinquency. On the other hand, your lawyer can't be compelled to testify against you, being protected by solicitor-client privilege. Your lawyer may also have his own in-house accountant in order to protect you.

Your lawyer (specializing in criminal and tax law) will likely negotiate an agreement with the tax authorities before filing any tax returns.

Therefore, if there is a good chance you could be charged criminally for your failure to file tax returns or properly report income or expenses, don't see your accountant. Instead, consult a lawyer specializing in such matters before you file or amend any returns.

Article written by J. Stephen Pope
J. Stephen Pope, President of Pope Consulting Inc., has been helping clients to earn maximum business profits for over twenty-five years.

For profitable Work at Home Small Business Ideas, visit http://www.yenommarketinginc.com/

To learn more about income taxes, visit http://www.yenommarketinginc.com/income-taxes.html

Article Source: http://EzineArticles.com/?expert=J._Stephen_Pope

More Ontario Income Tax Resources

taxtips.ca - Canadian Income Tax and Financial Information
Throughout this website we have resources, tips and calculators which will allow you to compare different scenarios. You will be able to see what a big difference a small change in your money management decisions can make. You may not think that this applies to you when you are young, but this is when it is most important, because you have the luxury of time (and compounding!) on your side.

Canadian Income Tax
Rotfleisch & Samulovitch is a Toronto-based boutique law firm specializing in tax and business law. By staying small and specialized, we are able to respond quickly and effectively to our clients’ issues and concerns—as they arise. Our client list includes individual entrepreneurs, businesses, as well as large, public institutions. We are justifiably proud of our enviable track record of providing in-depth knowledge and proactive, hands-on solutions for all of our clients.

The NETFILE transmission service is open from February 9, 2009, until September 30, 2009, for the electronic filing of your 2008 personal income tax and benefit return. Tax returns filed via NETFILE must first be prepared using one of the 2008 commercial tax preparation software packages or Web applications certified for NETFILE.

Taxman Canadian Income Tax Software
Free Canadian income tax and accounting software. Taxman prints approved tax returns for Canada.

Canadian Income Tax Preparation | Canada Tax Return
We are Canada's 100% Canadian owned and operated income tax preparation service . We will prepare your income tax return in our offices or in your home or office.

Tax Reduction Strategies
"It's How Much You Keep That Counts! Not How Much You Make."

Read More
THE ULTIMATE Tax-Reduction System For Small and Home Based Businesses!

This easy-to-use System was developed by an MBA and a CPA, and contains SPECIAL ENDORSEMENTS by a Certified Financial Planner and a Registered Investment Advisor, each with more than 20 years experience in their fields.

Follow Me on Twitter

Copyright ® 2009 TaxSaverOnline.com
Home     About Us     Home Business    Tax Savings     Newsletter    Articles