Why Do Governments Collect Taxes?
Governments collect taxes from people in order to run the economic system. Taxes are a very important part of the economic system. The government officials working for the country and other mass projects are run through the taxes collected and the budget of a country is also determined by the amount of taxes collected from the people in the form of direct and indirect taxations.
If you are working or have a business, then paying a direct tax is a compulsion on you. The same goes for people who belong from other countries but are working in some other company.
What Are The Tax Laws For US Expats In Canada?
Different countries have different laws for tax collection and tax filing. These laws are quite complex and different people fall under different tax filing categories. US expats are liable to pay taxes in Canada. An individual who is a resident in Canada has to pay the tax from his worldwide income. The best way to understand all the tax laws or to make sure that you file all your taxes correctly and save yourself from extra taxation is to hire an expat tax CPA.
Tips on How To Stay On Top Of The Procedure
The best way to keep your tax filing process in check is to make sure that you hire a good and reputable company like protax consulting services. These companies make sure that you are connected with a good CPA and they also make your tax filing process easy.
Beware Of Tax Frauds
There are certain companies that can commit different kinds of frauds with people in the name of tax filing. They can take away your refund without you even knowing it and can later disappear. It often happens that people end up paying more taxes because their CPA was not qualified enough to help them find ways to get tax reductions.
Tax Evasion Can Get Your Penalties
You need to know that there is a difference between tax evasion and tax exemption. Unqualified and fraudulent CPAs can trick you into believing that tax evasion is tax exemption and this can end up badly for you. If you get caught evading taxes, you will be penalized. Tax exemptions do exist, but it’s not necessary that everyone will fall under that list. You can get tax exemptions but for that, you will have to consult a certified CPA who can guide you on the matter.
Never Sign An Empty Tax Filing Form
One of the most dangerous things to do is to sign an empty tax filing form. What happens, in this case, is that your tax filer may add unnecessary or non-existential deductions to the form. There are also various kinds of frauds that can be committed through tax filing forms so beware!
Make Sure Your Tax Filer Signs The Form
Every CPA has a filing number. Make sure that your CPA signs the form above your name and mentions their PTIN number in order to make sure the document becomes a formal one and safe. This way you have proof that a CPA was involved.