Make Money on Autopilot Mode

Personal level Income Streams

Income can be broken down into essentially three types:

Earned income (1:1)

Portfolio income (Investment)

Passive income

Online profit streams

Regardless of whether you are beginning to develop your own business model or simply analyzing an existing business, the key focus is to decide on how are you going to generate that extra income. From my point of view, the best source of income is passive income whereby you do not have to physically there as it is created on an auto- pilot system.

If you’re familiar with flying, you know that an automatic pilot is an instrument the pilot uses to make flying a lot easier. It is not used during takeoff, when the pilot must concentrate on every detail. However, once at cruising altitude, the pilot can set his course, speed and altitude, turn on the automatic pilot, and presto- the plane takes over! The pilot is now free to do other things. This does not mean he can forget his job. However,this means he only need to check his gauges and instruments occasionally. The pressure of flying has been significantly reduced. Your goal, as a creative investor, is to launch your ship into financial orbit, and then put it on auto- pilot mode!

Take a look at the 2 scenarios below which will exemplify the point on scalability.

Scenario A: David is an accountant in a firm and has been offering one-to- one professional service to small and medium- tier businesses for the last fifteen years. Although he charges $200 an hour, his revenue potential is limited as he only has 24 hours a day. He rants at the accounting software which only caters to the big companies and is not user- friendly for the small firm.He ends up slogging day and night for 10 hours daily. His wife threatens to file for a divorce with him as he hardly has time for his family.

Now, consider the following scenario B.

Scenario B: David leverages on his capability of offering sound accounting advice and develops a new software with templates that aids the accounting function of these businesses. His software is well- received as he understands the common accounting difficulties small and medium- tier business faces. He is able to provide a solution for their businesses needs. David is now able to enjoy more time with his family as he earns from the royalties from the sales of the software. He no longer have to be physically present to earn an income as he is able to create a system that runs on auto- pilot mode.

The above scenario is a tad simplistic, yet this point highlights the fact that as we develop from an Industrial Age to an Information Age, there can be boundless opportunities and the ability to reach out to the mass in a much shorter time. In your course of life, do think about making use of technology to aid you to work smarter, not harder.

Elininating Parent Stress (Part 3-4 ) Simplify Your Daily Shedule

One way to make a lot more time in your day is to simplify your daily schedule. Sounds easier than it is right? Not necessarily. Here are some easy ways that you can free up some time in your schedule every day. Make technology your friend – Does that meeting really have to be in person? Don’t add a 45 minute commute to a meeting to your day. Use Netmeeting or another Internet conferencing service to hold the meeting on the Internet, or on the phone, perhaps even using streaming video. Cutting out that commute time and all the time that is wasted waiting for everyone to show up and waiting for a meeting to begin, parking, and all the other hassles that go with in person meetings can give you hours day. If you can’t avoid going to a meeting then use the computer to plan out a traffic free route to get there, find nearby parking with an online search, and pay for your parking online before you even get there. These days, nearly everything can be done online. Use the Internet to help you conduct your business more efficiently. Take the train – You may not be able to avoid a commute to the office but if public transportation is available, take it instead of driving. Use your commute time to take care of personal business, or even get started on things like reading your business emails to cut down on the amount of work you will need to do when you get to the office. Combine activities – Instead of trying to schedule time at the gym and family time on the same night, take a walk or a bike ride as a family after dinner and combine those things. The more activities you can combine the more time you will have to spend on other things. Focus on the task at hand – If you are trying to think ahead to the next task on your list you will rush through the one you are doing without paying attention to it. If you do this task poorly, you may need to redo it and end up with less time. Don’t worry about the next item on your schedule; focus on the one that you are working on at the moment and really concentrate on getting it done. You’ll be amazed at how quickly you can accomplish a task if you are really concentrating on it and giving it all of your attention. When that task or meeting is done go on to the next but still concentrate on just one thing at a time. Working efficiently is a great way to get the most free time possible.

WORKING FROM HOME
Sometimes it seems like you should have more time working at home than someone who doesn’t work from home, but, in fact, you may find that you have less. That’s because there are so many distractions at home and so many ways to get sidetracked from your work, which makes you go off schedule and eats up your time. If you work from home, here are some ways to minimize your at home disruptions so that you can get your work done as quickly and efficiently as possible. De-clutter your workspace – It’s amazing how fast clutter can clog up your workspace, especially in a home office that may end up crowded with kids toys, pets, or other distractions. But it’s important to keep your office, a place of business where things are orderly and tidy and you can find everything you need easily without digging through files or stacks of paper. It’s easy to get off track when you have to go digging for an item that you really need. The time that gets wasted digging for a particular paper or CD or other item can really add up through the course of a day so make your home office a clutter free zone!

Only check your email at scheduled times – One of the biggest time wasters for work at home parents is email. Make sure you have separate business and personal emails and don’t check your personal email at all while you’re working. Check your business email twice a day, maybe when you start work and just before you are ready to quit for the day. Don’t become a slave to email and sit there reading and answering emails all day long. The same rule applies for web surfing. You might only intend to look up one thing or check that eBay auction you want to bid on but, before you know it you’ve spent an hour surfing online. Remember that the faster you get the work done the faster you can spend time with your family so when you are in your office really focus on getting that work done.

Get the kids out of the house- It’s really difficult to work when your kids are interrupting every few minutes needing something, wanting something, or doing things they shouldn’t be doing. If your kids are still so young that they can’t be left unsupervised then either hire a babysitter to come in and watch them during your work hours or get them out of the house. Send them on play dates, send them to a neighbor’s, schedule lessons or sports activities during your work hours or wait to do your work while they are in school or at after school activities. You will be able to work much faster and more efficiently if there is no one around interrupting you every five minutes.Schedule time for errands -Instead of running to the store, the post office, the dry cleaner, or other errands every day, pick one or two days a week that are your errand days and only do errands on those days. Gas up the car, pick up the groceries, mail out the bills, do any and all errands that need to be done for the week ahead on those specified days. It will take some planning at first to get in the habit of getting all of your weekly errands done on those specified days, but once you get the hang of it you’ll be amazed at how much time you can save. Set scheduled work hours – It’s really nice to be able to work from home and keep a flexible schedule, but parents who are trying to balance a family and a business should set regular business hours and stick to them. Having regular business hours will make it easier to manage stress and give you more time for your family. It doesn’t matter what hours you decide to work but set a regular work time period and stick to it. Turn off the business phone at night – Work hard and focus on your work during your normal work hours but once those hours are up for the day turn off the business computer and the business phone and don’t think about business. Once work hours are up then it’s time for family and time to focus on being a parent. If you let yourself get distracted late at night or early in the morning by work phone messages or work emails, that’s taking time away from your family

Using flex time If you don’t work from home, and your job isn’t willing to let you work from home all the time, you should consider asking for Flex Time. Flex Time allows you to work at home for a pre-set number of hours per week. Usually employers will allow Flex Time for up to 20 hours of a 40 hour work week. Flex Time can be a great way to get a little more flexibility in your daily schedule but still keep your boss happy and get all your tasks done at the office. When you are working at home using Flex Time, though, you need to make sure that you don’t end up wasting the time you are supposed to be working. Here are a few ways you can make sure that you can work just as well at home as you can at the office. Make copies of everything – If you work with files or reports or any kind of paperwork, make two copies of every single piece and keep one at the office and one at home. That way you don’t have to stop working if you leave a file or a paper at the place where you are not. No matter how organized you are, eventually you will leave an important file in the office or on your desk at home and you won’t have it when you really need it. Plan ahead and make copies so that there is always a copy of whatever paperwork you need wherever you are working. Use a laptop – Instead of having one computer in your office and one at home, invest in one high quality laptop computer that you can use in the office or at home. If you have a laptop then you won’t have to worry about files you need being on your computer, or work or an email you need to answer being on the computer at home. Keep everything organized on a laptop and save yourself the hassle of constantly hunting for the information you need to do your job. Use your time wisely – If you can work at home on Flex Time two days a week then get up at the same time that you would if you were going into the office and use the time you would have spent commuting to exercise, read, plan your to do lists, return phone calls, pick up the dry cleaning, or do other errands that you didn’t have time for during the rest of the week. If you have a half hour or longer commute like most people do, then using that time productively for other things on your Flex days can give you a lot more free time to spend with your family.
STARTING YOUR OWN HOME BUSINESS

If you really want to make more time to spend with your family but still need some kind of extra income, you should consider starting your own home business. There are lots of ways that you can work at home and earn money. Parents with small children love home based businesses because they have the flexibility to work around their children’s schedules, save money on daycare, and still bring in some income. It’s easy to find resources on the Internet that will help you start your own home based business, but what type of business should you start? Here are some home based businesses that are really popular with parents.

Administrative work – If you have a background in office clerical work you can easily start to do administrative work for businesses as a freelance business. There are lots of resources online to help you find clients and beef up your resume to help attract clients. You can spend a few hours a day doing basic administrative work while the kids are at school or at night after the kids are in bed.
Online support – If you are comfortable on the computer and have a background in customer service, you can find work as an online
support specialist. Many businesses these days have live help available for their customers through chat applications and email.
These companies need trained customer service reps to help their online customers. Since online businesses run all over the world, it’s
easy to pick a shift that fits into your schedule.
Virtual assistant – Do you have extensive corporate training? Then you can work as a virtual assistant for a busy business executive.
There are executives all over the world who don’t work out of an office but need someone to answer their phone through the Internet, screen their email, and make travel arrangements.
Accounting – Many businesses need reliable people to do their books. If you have experience in accounts payable and accounts receivable, you could start a freelance business doing accounting for businesses.

Child Care – Opening your own child care business can be a great way to stay at home with your kids and earn money, especially if you have small kids who still need a lot of supervision and may not attend school yet. Be sure to check out the local and state licensing regulations for child care businesses where you live and make sure that you fulfill all the regulations before you officially open for business though.

Online Tutoring – If you have a high degree of education in one area, like a college degree in English or Math or a fluency in another language, then you can become on online tutor. The trend of parents hiring online tutors to help their kids with school work through chat applications and instant messaging is growing since many parents don’t have the time or money to take their kids to a highly specialized tutoring center.

Personal Shopper – You can make some extra income while you run your errands as a personal shopper. Busy professionals will pay good money for reliable people to handle errands like going to the post office, picking up groceries, picking up the dry cleaning, and other errands.

Catering -If you love to cook and entertain then consider starting your own catering business. Pick an area you really enjoy or have a lot of experience in to specialize. For example, you could specialize in catering kids’ birthday parties or holiday dinners or even seasonal items like holiday cookies and cakes. Many stay at home moms make extra income baking holiday cookies for people who love homemade cookies but are too busy to bake. Any time you want to open a business dealing with food be sure to check out the regulations about selling food where you live. You may need a permit or you may need to get your kitchen certified.

Pet sitting/Walking – Pet care is one of the hottest growing fields and it’s the perfect job for parents who want to stay at home. If you are used to being around pets, there are many professionals who pay people to walk their dogs or spend time with their pets during the day. Before beginning a business like this, check to see if there are any regulations about starting a pet business in your area. You should also consider getting bonded, since you will be given access to people’s homes and many times people prefer to hire people who are bonded when the job involves being in their homes when they aren’t there. Our series will cover all the above aspects with ideas and solutions so please don’t forget to look out for the next part of this series If you would like to purchase the book this article is from go to http://quickinfoebooks.com/pregnancy-baby/eliminate-stress/#ordernow

Benefits of a Business Analytics Certification

Whether you’re looking for a course to further your career or you have a keen interest in analytics and want to enjoy a long term career doing what you love, you will find that a business analytics certification can provide you with a host of benefits that you can enjoy on a personal level each and every day.

Not everyone loves being glued to a computer screen managing analytics, but there are those that find this fascinating and once you have the relevant training, you can use this daily to prove your worth and advance in your career.

The main benefit to holding a business analytics certification is that you can prove your competence to do the job. When applying for a position that requires this type of training, including your certification is a sign that you are more than able to do the duties required and increasing your chances of being selected.

You will find that your business analytics certification is recognized by industry professionals, which is a major benefit especially when applying for a position or a promotion within your company. You will find it is recognized, not only by company owners and directors, but also by your peers and colleagues.

Another benefit to holding this type of certification is the advancement in career potential that it can provide. When you start in any type of job, you begin at the bottom and you work your way to the top. You can only be considered for advancement if you have the relevant industry knowledge, experience and training. Holding a certification of this nature proves that you are more than able to manage the duties of the promotion and this can help you achieve success in your career moving forward.

When completing your course and being awarded with your business analytics certification you can enjoy a sense of accomplishment, a personal satisfaction that you have achieved something, improved your knowledge and have learned something new. Personal satisfaction is important to improve confidence and self-esteem and to help you be the best you can be in your chosen career on a daily basis.

You will notice that when you choose a business analytics certification course your performance will improve as you move through your career, this is due to the fact that any uncertainty on how to do your duties is removed. Your confidence is soaring and you know exactly what needs to be done in order to achieve success in your chosen tasks, which is a major benefit on its own.

In addition to this, having a business analytics certification can help you improve your income potential. With a certification in hand, your chances of getting paid a higher rate is increased. In this day and age, you want to earn the best possible income your position and level allows and companies are more likely to offer a higher income to someone who has a recognized certification than someone who has taught themselves and don’t hold that valuable piece of paper that proves they have received adequate training to complete the job at hand accurately and to the highest standard.

The good news about business analytics certifications is that you can complete them online at your own pace. This enables you to work full time and improve your knowledge and experience in your own time after hours without effecting your current position.

Earn Extra Income With SFI

If you have been wondering where to start and make extra income online, SFI would be a great pick. Considering that there are many home based business opportunities online, you need to be selective of where you invest. It does not necessarily have to be investing money, but your energy and time. No one wants a futile program that you will input so much energy and time, only to realize that you cannot withdraw your earnings. With SFI though, you can be confident that you are not wasting your time. On top of that, the income is real, and you can withdraw your earning and actually see the fruits of your hard intent work.

So, what is SFI all about?

SFI provides services for real internet income. I know you are wondering what these services are, so, I’ll break it down for you. SFI is an affiliate market program, which you can sign up to for free. It is also an E-commerce website that offer different products and services to clients. Form the website; you will find all you need to get started and have a rough idea of what is expected of you. They have over 90,000 products plus commissionable products you can earn from. Without these products, then there would be no means of the extra income you want to earn. On top of that, new products are added on a daily basis. So, you can expect plenty of products to trade and new ones every day that will help increase your income.

What are the requirements to start?

The only thing you need is a laptop and the internet. Nothing else. Many people shy away from affiliate marketing programs because they ask for charges. At least most of the real and profitable ones. But, for the same ascertained providence, with SFI, you can get all that for free, YES! You can start free and build your online empire slowly but steadfast. They also provide you with adequate training that will help you work with the available products. Their training is extensive and touches on every aspect of affiliate marketing and E-commerce. So, no need to worry about experience and expertise at the field. Everything is at your disposal.

Am I obliged to purchasing?

No, not at all. As a matter of fact, there are no purchase requirements whatsoever during the time period you are earning income with SFI. The internet income opportunity is a free ride for you as the company provides you with the necessary products you will be marketing. They won’t ask for payment to send the products as they ship them to you for free. As an added advantage, you will also be provided with free sale support services, payment processing, and customer support, all at no cost.

When can I expect to start earning?

At first, you will be requested to do simple actions that will help you get started. This all comes within the first few hours of joining SFI. So, there’s no need to wait around for the time to earn to start that only seems to be so near, yet far from reach. It is more than your friendly website where you can earn money online for free. It provides an open forum where you can receive your rewards in no time. Withdraw upfront or accumulate so that you have a large portion of extra income. Whatever that pleases you. After all, the money is already yours from the commissions you’ve earned on sales made.

Want to hear more about how you can earn with?

You should know that once you have signed up with SFI, you become part of their worldwide initiative to provide their services to everyone. You are the affiliate to the customers, and they are the bosses offering you opportunities to establish your online finances. On registering, you are given a professional marketing website that you will be using to promote the products you have been assigned. Once you make a sale, then SFI automatically records the data and creates a commission for you. The commission is then transferred to your website where it displays your earning and other important details.

How do I access the money earned?

One thing you will love about SFI is that you can withdraw money in your country’s currency. What does that mean for you? It means you do not have to worry about conversion rates and other inconveniences with converting currency. Withdraw from various platforms such as Payoneer, AlertPay, and PayPal as well as through checks and MasterCard. Once you have the money from SFI, you can easily access it and have the feel of your hard efforts.

Final Verdict

SFI is as real as it gets and there is no more you can ask for than you receive. It is free, they guide you through the earning process. Above all, you can see the tangible pay of the sales you’ve made. The good thing with SFI is that you will be making money from home or anywhere else you are comfortable working from. In short, you have the freedom to choose from where to work from. It is a real lifetime opportunity with all the other reliable E-commerce websites that actually help you earn real cash.

Do not waste your time on affiliate marketing if you are not guaranteed of making any substantial wealth. Join SFI today, and find out more on the benefits you are promised. Help yourself and help your friends succeed by getting started on SFI today!

Introduction of Accounting Services and Why it Require For Small Business

Accounting is the process of recording, verifying, and reporting all daily transaction of the organization. This is containing all the debit and credit entries of the ledger and employees and all financial transactions. From this, such financial information is primarily used by manages, investors and other decision makers to make a decision within company.

For every successful business require accurate management of all their financial transaction and activity. Finance and its right management is the key aspect to determining the running success or failure of any business.

So it is important that the all accounting and all financial transaction are managed properly and utilized correctly and this is made easier by finding a good accounting service with qualified and experienced CPA’s who could guide and help the business succeed.

Accounting services required for small businesses depends on the nature and the size of the business. The three main tasks are tracking the income and expenditure of the business, generate forms and keep detailed records of its assets as well as the liabilities of the business.

Accounting services for small businesses are needed for dealing with all financial transaction and tax matters such as cash flow management, account reconciliation, ledger maintenance, payroll tax planning, preparing and documenting tax records, returns, dealing with state income and managing taxes, estate planning, book keeping, for preparing loan applications etc.

Therefore, it is essential for small business owners to hire a good accounting service firm or an independent CPA. You can meet several firms, find out the services they offer and the costs, describe what services you need and find out how much it may cost, ask for references. Make sure that you would be able to have healthy working relationship with the accountant you hire.

There is lots of accounting services provider in market. But it is too difficult to finding the best and trustable accounting services provider or firm. Outsourcing bookkeeping services is one of well-known online accounting, book keeping, and financial services provider in accounting field.

Gary Fritts Easy Web Cash System Review – Scam or Legit?

So, you want to make money on the internet? Many jump in unprepared for what can follow. I took the plunge recently and was excited to start but things quickly turned sour.

Now, I have nothing against the Easy WebCash System, except – where did the author go? It seems he quickly disappeared and the website for all the members became disabled with no communication from the author or site developer.

I took the plunge about a month ago. The site was very well designed and called the Easy WebCash System. Since it was only $37, it wasn’t much to risk. Heck, I’ve lost over $10,000 in the stock market, so what’s another $37?

When you signed up for the system, you were automatically given a duplicate website and authorization to promote the product. The product was the opportunity plus 10 or more downloadable products, such as ebooks and software.

After making several sales on Craigslist.org (free ad site), I noticed that when I clicked on my link it responded as unavailable. With further research and several phone calls from other members, I quickly realized that Paypal had shut the site down for terms of service reasons. It has been over 3 weeks now, and I still see some advertising it, but when I click on their links – it’s still down.

One thing that confused me when getting started with this program is that the author received nothing. It seems that the members pocketed the whole $37. He mentioned that he was just trying to get his name out there. That was one issue that confused me at the beginning.

Lesson learned, opportunities come and go. Case in point, how many network marketing companies have gone under, probably 90% or more.

Well, I started on another venture. It is priced at $50 and offers about $10,000 worth (175+) products, so it is a much better value. The owner on this site gets $27.75 for a one time web site charge, so he has vested interest in keeping it live. This program is called the Stealth Money Maker. The site is a little better designed and offers much more. You can visit this site by clicking on the link below.

I just advertise this site on free sites such as, Craigslist.org, Backpage.com, and Kijiji.com.

Good luck in your internet venture. It’s exciting to wake up to cash in your account in the morning.

Here Is A Business Anyone Can Start

There is a highly profitable niche business that up until a short while ago was almost impossible to get into; even though literally millions of people love this business, use its products daily and most; can’t seem to live without what it offers.

What is this business that does billions of dollars annually, is practically recession proof and whose products are offered all over the Globe?

It is the Beauty Supply Business.

More specifically, it is the ability to offer Wholesale Beauty Supply Products to your Clients while working from your home or from anywhere in the World you would like.

My initial reaction when I was first introduced to this niche was: “this certainly isn’t your ordinary, run of the mill, business.”

Nope… this is unique, not only in the products offered but in how simple it is to get into.

First, you can get access to over 300 Brands and over 12,000 products. Everything necessary for all your Beauty needs and at Wholesale pricing.

Secondly, you can join for free and no credit card is needed.

In today’s economy with so many needing a second or even third source of income this is a great way to get started. When you join for free, it is a 60 Day Trial, and you can earn 15% Commission on everything you sell paid out monthly. You will be able to sell from over 300 of the most popular products at this level.

Naturally, there is an upgrade, but it is, remarkably only $14.99 per month. At this level you make referral bonuses on your clients that upgrade. Plus, you begin to earn 30% Commission on over 500 Beauty Products like Hair Care, Braids & Locs, Styling Products, Styling Tools, Lashes, Hair Extensions, etc… all at Wholesale.

Everyone we know wants to look their best and now they can get the products they love at money-saving prices and, if they want their own business it couldn’t be easier for them to start.

You get your own website and you do not have to stock any products. Your customer buys from you, the company ships the products for you, and you get paid. Simple.

If you are tired of the typical pills, potions and lotions business and want a unique, affordable business to start then I highly recommend this. You can learn more about it at: http://GetThisFreeStore.com

This is a turn-key business that you can start and take as far as and as big as you want it to grow. We recommend this one without reservation.

By the way, for those that want to earn even more; there is one other level that gives you access to 4000 products and pays out 50% Commission bi-weekly! You can learn all about it when you join for free.

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Ultimate Practical Tax Lawyer Secrets to Tax Audit Survival

CRA Income Tax Audit – Toronto Tax Lawyer Introduction

As Toronto tax lawyers we deal with CRA audits and auditors on a daily basis. So what is a tax audit? This article will explain what you can expect to happen if you are audited for taxes.

The Canadian income tax system is based on self assessment. In other words it is up to every Canadian taxpayer to fully and properly report their total income from all sources on their annual T1 or T2 income tax return. The Canada Revenue Agency performs tax audits and issues income tax assessments to ensure that the self-assessment income tax system continues to work properly. While most Canadians are truthful on their tax returns, there are some who are not. CRA is looking for errors or disputable positions or deliberate misstatements on tax returns that have been filed.

What is a Tax Audit?

An income tax audit is an examination of a taxpayer’s returns and supporting records to make sure that income and expenses have been properly reported and are supported by accounting records and receipts. The CRA tax auditor will ask to see the individual or corporate books and records and bank account and receipts for expenses. A corporation will normally have to provide its minute book to support any dividends or bonuses. There may be questionnaires to be filled out. Any information that is wrong, even if due to an error, will be used against the taxpayer.

Most audits are done to ensure compliance with the Income Tax Act for income or payroll deductions or under the Excise Tax Act for GST/HST.

Canadian Tax Audit Procedures

CRA auditors will often search for relevant information on the Internet, and a taxpayer’s web site or other sources located on Google might contradict information the taxpayer provides to the auditor. This information will then be used for further enquiries possibly including 3rd party requests for information. Furthermore open social media accounts are publicly accessible, and CRA auditors will gather this data from taxpayer social media accounts to build a case against a taxpayer. CRA officials have publicly discussed using taxpayer’s social media accounts in this way. If taxpayer lifestyle and reported income don’t match up the CRA tax auditor may decide to look into the taxpayer’s situation to see what’s actually going on.

CRA’s practice on income tax audits is to do a GST (and HST) compliance review; if problems are found, the matter is normally forwarded to a GST/HST auditor for a full GST/HST audit. Similarly, an income tax compliance review is often done during GST/HST audits. Combined income tax and GST/HST audits were discontinued in July 2010. These compliance reviews are not always carried out and sometimes income tax audits may miss large GST/HST problems and vice versa.

CRA Audit Statistics

CRA issues an annual report to Parliament. The latest one was released in January 2016. The audit statistics from CRA Annual Report 2014-2015 provide less detailed information than for the previous year.

For small & medium enterprises no statistics were given. CRA reports that they reviewed 12,981 international and large business files and 9,440 aggressive tax planning files that resulted in identifying $1.4 billion in fiscal impact. For international and large business files CRA audited 6,540 income tax and GST/HST underground economy files and identified over $448 million in fiscal impact. In all cases there were fewer audits in 2014/15 that the previous year. Presumably this reflects the results of budget changes.

Reasons for Tax Audit

CRA may choose to audit a taxpayer for several reasons. Amongst them are:

  • Industry audit projects
  • Random selection
  • Third party tips
  • Past history of non-compliance
  • Comparison of information on returns to information received from third-party sources – in other words are all T-slips reported

Since 2011 CRA has been auditing high net worth individuals and families, sending questionnaires asking for information about all companies, trusts, etc. that they control.

CRA has also been concentrating additional audit resources on the underground economy in an attempt to deter unreported cash sales.

What is the Tax Auditor Looking For?

The focus of the tax audit is to find errors in tax returns. Here are some examples of typical issues that may arise in a tax audit that would cause a taxpayer to receive a tax assessment at the end of the tax audit and that could result in penalties or a referral for a tax evasion investigation:

  • Overstated Expenses
  • Overstated Deductions
  • Over claimed Income Tax Credits
  • Under reported or unreported Earnings
  • Unreported cash sales
  • Unreported internet income
  • Unreported offshore income
  • Unreported offshore assets
  • Credits, such as for charitable donations, that are not supported by receipts
  • Personal expenses deducted for business
  • Shareholder loans not repaid within 2 corporate year ends

Right of CRA to Audit and CRA Audit Policies

Section 231.1 of the Income Tax Act gives CRA the statutory ability to carry out audits. In particular it entitles auditors to request and examine documents including computer records. Section 231.2 is a more formal provision whereby a “demand” or “requirement” is issued, but it need not be used by a tax auditor in the normal course where s.231.1 suffices.

The CRA can choose to audit anyone, but case law has held that such discretion does not permit a vexatious audit made for capricious reasons.

The Canada Revenue Agency has an internal policy in CRA Audit Manual §9.12.3 that audits should normally be limited to “one plus one” years that is to say the most recent year for which a return has been filed and assessed, plus one year back, with limited exceptions. This policy can be pointed out to a tax auditor to try to limit the scope of audit requests, but it has no legal effect and cannot be used in court to challenge a tax assessment that has been issued. Of course this rule of one plus one years does not apply in the case where CRA suspects unreported income. They will typically look at three years, and in some cases even more than 3 years.

In theory, the CRA has no discretion in applying the Act and must “follow it absolutely” by issuing a tax assessment for all otaxes wing. The reality is that in practice tax auditors have wide discretion not to assess an amount, however once it is correctly assessed; a Tax Appeals Officer or Tax Court judge will have no power to cancel it on grounds of equity, fairness or compassion.

Tax Audit Assistance from Toronto Tax Lawyer

Our top Toronto tax lawyers fight CRA tax auditors every day. A taxpayer has the right to professional representation at all times. This is specifically provided for in right 15 of the Taxpayer Bill of Rights which says “You can choose a person to represent you and to get advice about your tax and benefit affairs. Once you authorize us to deal with this person, we can discuss your situation with your representative.” A taxpayer should never meet with a CRA auditor without a professional Canadian tax lawyer present. Any information that is wrong, even if due to an error, will be used against the taxpayer. The auditor will also take notes and may misunderstand what the taxpayer has said or may wrongly record responses. An Ontario tax lawyer will have his or her own notes to contradict any auditor errors. Contact our Toronto tax law firm for tax help as soon as a CRA tax auditor contacts you.

How to Manage Your Money Better in Five Easy Steps

Money is anything used for the exchange of goods and services. Money is, in the world of commerce, what blood is to the human body. The roles money plays in our daily lives cannot be over-emphasized. It is pervasive, yet very few people understand how to deal with the challenges arising from the use of it.

Your money is an important aspect of your life. The amount of money you have can determine what you do, where you go and how you live on a daily basis. Learning how to manage money is, therefore, an important step towards taking control of your life. In order to manage your money properly, you must first understand the source of your money and how you spend it. Make sure that the way you manage your money falls in line with the things that matter most to you.

Very importantly, the secret to living a financially free life is to cultivate effective money habits. Fortunately, you do not need any degree in finance to be a good manager of your money.

Now let us briefly look at those simple steps that can help you manage your money efficiently.

1. Set up a budget and most importantly, stick to it. The rule is to spend less than you earn. Having a budget helps you track your spending, i.e. you know what you spend money on, on a daily basis. You may be amazed that those little amounts you spend on certain routine add up. One good way of tracking your spending is to open a bank account.

2. Understand the flow of your income: Know what you earn from your job or your business. Know your true income. If you are a salary earner, your true income is your earning minus compulsory deductions such as tax, pensions and other statutory deductions required to be taken out at source by your employer. If you are a businessman, place yourself on a salary and discipline yourself by living within the salary as though you are an employee by following the rules highlighted above. This is what accountants refer to as net income. Budget on your net income. You cannot manage your financial resources properly if you do not have a clear idea of what those resources are.

3. Actively manage your bank account. Some people do not pay attention to what goes on with their bank accounts. Keep a record of all additions to your bank account and all that you have withdrawn from it either directly from the bank, checks or the electronic channels like ATM machine and POS terminals. At the end of the month, make sure that what you have in your account tallies with what you expect to have based on your calculation. Where you are not able to explain any differences in the number, contact your bank immediately for an explanation.

4. Start saving: You have a budget; you track your spending and you are probably spending less than you earn; now it is time to begin to save. You should have a savings account and once you received your monthly salary or earn income from your business, put away a part of it in the savings account. An easy way to save is to give a standing order to your bank to transfer a certain amount of money to a named savings account once your salary account is credited. If you save as little as 10 percent of your earning every month, you will be amazed at how your savings account will grow by the month.

5. Invest: By investing part of your savings, you are actually getting your money to work for you. Set aside a portion of the money in your savings account for investment on a regular basis. There are many options available to you to start investing such as stocks and mutual funds. For a beginner, mutual funds are a safe and easy way to begin investing.

Most importantly, a common source of money troubles for most people is bad borrowing. By bad borrowing I mean when you borrow money to fund consumption rather than acquiring income-yielding assets. If you manage your money well by following the steps highlighted in this article, you will have less cause to borrow money in order to meet your daily need. Managing your money effectively will help you take control of your life. If you manage your money properly, you become less anxious about your finances.

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