Abbotsford is a city in the province of British Columbia in Canada. It is adjacent to the Greater Vancouver area, the Fraser River and the United States – Canada border. The city has an estimated population of 141,397 making it the largest municipality in British Columbia.
Abbotsford has a diverse economy with industries in the field of transportation, agriculture, manufacturing, retail as well as aerospace.
The city earns more from agriculture than any other city or region in Canada. Most residents of Abbotsford work within the city while others work in surrounding areas like Mission, Vancouver (including Surrey and Langley) and Chilliwack.
As residents of the city, businesses and individuals are required to file their tax returns regularly. As in most cities and countries, it is a requirement by law.
1. Type of Taxes
Taxes are compulsory financial payments or levies imposed on a legal entity or individual by the government to raise revenue. They are used to fund government spending or public expenditures.
There are several types of taxes that have to be paid in Abbotsford. These include corporate and personal taxes, property tax, sales tax, and goods and services tax. Two of the most important taxes directly paid by an individual and companies in Abbotsford are personal and corporate taxes, respectively.
1.1 Personal Tax
Personal income taxes are typically levied or charged on an individual’s income; wages, salary, or any other type of income earned by that person. It can also include earnings that you get as a self-employed person or sole owner of a business.
In some cases, they may be deducted directly from a person’s salary or wages before the individual is paid if they have regular employment. In some other cases, the individual will need to do a self-assessment, especially if they are self-employed and pay directly to the authorities.
1.2 Corporate Tax
This is another type of income tax, but this time, it is levied on the operating earnings or profits of companies and businesses in Abbotsford rather than individuals.
It is usually paid on the company’s revenue minus their expenses, cost of goods sold, marketing, research, depreciation and other costs. You can learn about taxation in Canada from this article.
2. Filing Your Returns
If you were a resident in Abbotsford up to the last day of the tax year or earned some income in the city during the year, you may be liable to pay an income tax.
Even if you do not owe any tax, you may still have to file a return. This is especially true when you intend to claim a refundable credit, apply for financial assistance, or receive a bonus or benefit.
Typically, the filing must be done on or before April 30th each year. You may be charged interest or penalty for late filing after this date. A late filing may delay any credits or payments that may be due to you.
3. Engaging Tax Preparers
When filing your returns, you must use an excellent and experienced tax service provider. These are companies and businesses that help individuals as well as corporate organizations to prepare their tax returns.
For individuals, they can help you along with your family to fill and complete your returns. By understanding your financial situation via your statement, receipts, and records, they may legally minimize your liability.
You can find a sample of how to file a return here https://dynamic.ca/eng/snapshots/newcomer/newcomer_taxsystem.html.
If you are a corporate entity, they will help develop a solid plan to reduce your tax liability. This is done through meticulous planning as well as using strategies that will help to achieve this.
Usually, these kinds of service providers have in-depth knowledge of the various tax laws and any changes that may impact you negatively. With this knowledge, they can liaise with you by understanding your business and plan effectively.
It is important to note that tax reduction is not about circumventing the system. It is about looking for opportunities that you may not be aware of to lower them.
There are several tax deductions and credits that may accrue to you that you may not know about. You may also be able to defer paying a taxable income or get it taxed at the lowest rate.
All these and many more your service provider will be knowledgeable about and will be able to identify so that you can get the best rates possible. They will also ensure that your paperwork is in proper order and filed appropriately.
Remember that corporate taxes can be quite tricky, and wrong numbers can negatively affect your company in more ways than one. It can lead to costly audits as well as fines. This makes it all the more important to use experienced Abbotsford tax services for your filings and returns.
Taxes are compulsory levies that you have to pay either as an individual or a corporate entity. Avoidance can lead to dire consequences so also is not properly filing your returns as wrong numbers can lead to undesired penalties and audits. As a company or individual, you want to ensure this is not the case.
Fortunately, service providers are experienced and knowledgeable in applicable laws that can help prepare your returns. They will help you find ways of reducing your liability, and will also ensure that your returns are properly filed and on time so that you can avoid any penalties or fines.