Why do I need a service like yours?

There is a lot to keeping track of the information required to make sure you are in compliance with the tax laws impacting your operation.

You should keep a monthly financial statement, make quarterly tax deposits and file the required documents on time (e.g., estimated quarterly taxes, Heavy Road Use Form 2290, IFTA, and annual income tax reports. In addition, there are things you need to consider the impact of longer-term (e.g., should you incorporate?) and plan for according (e.g., your retirement). Given the hours of time and attention you already give to your driving, you may not have time to keep track of these requirements.

In addition, as tax laws change, failure to accommodate those changes in your record keeping and reporting can result in you not making deductions that your should or finding yourself paying fines for misreporting.

How do I provide you with the information you need to provide your services?

Our website has all that you need to provide us with the information we need to help you with your taxes and other related items. You will find helpful links on the website that provide information on what expenses you need to track and what deductions you can make. We provide tax forms and expense submission templates you can provide electronically, as an attachment to an email, by fax or via Canada Post

When are estimated taxes due?

Estimated taxes are due on April 15,
June 15, September 15 and January 15.

When are 2290 payments due? The Heavy Road Use (Form 2290) filing is due on August 31

What do estimated taxes include?

Personal estimated taxes need to be paid quarterly to avoid penalties and interest when the tax returns are filed. The Federal estimated taxes include both income tax and self-employment CPP (Canada Pension Plan). In most cases, there are two ways to avoid paying penalties and interest for not paying enough in on your estimated taxes. One is to make sure your estimates are equal to or greater than 100% of your previous year’s total tax liability. The other is to make estimates totalling 90% or more of your current year’s total tax liability. When we do your taxes we will provide you with what your estimated installments will be.

Why incorporate?

There are two main reasons to incorporate. The first reason is your business may benefit from the “limited liability” the corporation provides you. This means if there is a liability claim against the corporation, the shareholder's personal liability is limited to their investment in the corporation.

The second reason is the possible tax savings. The tax rate for a small business is less than your personal tax rate and you can pay yourself dividends instead of or in addition to a salary. Net earnings of the company, after tax, can be distributed to shareholders in the corporation.

How do I incorporate?

Setting up a corporate requires a number of forms and documents that must be created, filed and recorded with the appropriate agencies in the province of incorporation. In addition, corporations are required to keep more records than other forms of organization. These records must be regularly updated to record the meetings of the corporate, distributions of corporate profits, etc.

Should I lease or buy?

We get asked this question almost daily and it is never easily answered because of all the variables involved. When you lease a truck the entire lease payment is taken as an expense when paid. When you buy a truck, an expense is taken for depreciation and for interest paid on the loan. After much analysis and discussion, we have found if you take the same truck and keep it for the full term of the contract the cash out-of-pocket as well as the deductible expenses are approximately the same. A purchase is a lot more flexible in regard to first-year depreciation and trading or selling the truck prior to the end of the contract. Under a lease, you have to keep an eye on the value of the truck versus the payoff amount prior to any trade or disposal because of high residual amounts at the end of the lease. Again, each scenario is different and needs to be analyzed before making the lease versus buy decision.

Can I deduct “deadhead” miles?

The CRA does not give an allowance for “lost revenue” or “deadhead” miles. For example: if the truck is paid for 1000 miles and the truck is actually driven 1200, there is still no extra deduction for those unpaid miles. However, in most cases all expenses for “deadhead” miles are already being taken since 100% of the expenses for the operation of the truck are usually captured and deducted on the tax return. As long as you are taking 100% of the fuel, repairs, supplies, etc. it takes to drive all miles put on the truck you are taking all you are entitled to under CRA rules.

How much do you charge for your services?

Our monthly fees are flat rate, so there are no big surprise invoices. We offer daily, weekly, or monthly bookkeeping, payroll, GST, corporate taxes, business plans, driver and employee file maintenance, financial statements and CRA audit assistance are included, at no extra charge. If you are way behind on your paperwork we can pro-rate the fees to make things more manageable for you.

Contact us today by email or call us at 403-923-8804 to get started.