I’ve got a riddle for you; what’s tasteless, has no sense of humour, is often black & white, but sometimes gray, and has no face? If you haven’t guessed it, it’s the Canada Revenue Agency (CRA).
In a typical work day, too often I speak to clients who complain about the challenges and complexities of our Canadian Tax system. In many ways, I can’t disagree with them. Our government has more than steadily grown bigger over the years and taxation complexities have more than kept pace. I’m a believer that less is more, and in the case of our government, I believe that it has grown too big.
A recent report by the CBC speaks to this story. They claim that our tax code can now be stretched out over 5 football fields long. Yes, I said 5 football fields. So how do everyday citizens navigate the Canadian tax rules to properly minimize their income tax owing each year? Truth is, unless you’re a Jedi tax master, you can’t.
Today, I am a strong proponent of letting professionals handle professional jobs. In my younger years, I used to think otherwise. As a matter of fact, I remember trying to renovate a bathroom in my first home and struggling so much with it that I eventually had to call a professional to help me finish off what I could not do. I know several people who file their own income taxes. I will applaud anyone who takes the initiative to try something that is out of their wheelhouse. However, are there potential risks and consequences of filing your own income taxes if not done correctly? Furthermore, are you filing your taxes and getting the best results possible?
So my message to Canadians is to think twice about who handles your income taxes. Consider the risks and consider the missed benefits of not having them done correctly and thoroughly by a professional.
Be sure to consult with your Financial Advisor for help in understanding how you can file your income taxes to get the best possible results.