Tax Tips

The most common income tax errors business make

Most common errors


• Unreported or underreported income

• Over claimed motor vehicle expenses

• Over claimed business-use-of-home expenses

• Over claimed utilities expenses

• Over claimed meals and entertainment expenses

• Capital Cost Allowance (CCA)

• GST/HST included in expenses claimed.


Common reasons for errors


Overlooked reporting of secondary or other sources of incomeLack of bank reconciliation, discrepancy between declared revenues and bank depositsExpenses are not supported with documentation or no supporting documents to explain the business vs. personal portion of expenses (e.g. motor vehicle, business-use-of-home expenses)Claiming personal portion of expenses (e.g. motor vehicle expenses)Lack of tax knowledge of tax rules (e.g. amount claimed that are limited by tax legislation – meals and entertainment, etc.)Assets classified as expenses Including Input Tax Credits as an expenses


If you have questions, please call Canada Revenue Agency or visit our office at 1468 Victoria Park Ave, Suite 119, 2nd Floor, Toronto, ON M4A 2M2, and call 416 925-2927

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