TORONTO, April 2, 2014 /CNW/ - The personal tax filing deadline is less than a month away so it is important for individual tax filers and small business owners to be aware of the many tax credits, benefits and reductions available in order to maximize on all tax saving opportunities.
Here are some of the many key tax saving tips for tax filers this year:
Tips for individual tax filers
- Moving expense deductions: Moving at least 40 km closer to a new home for work, business or full-time attendance at college or university presents tax saving deductions on the income you earned at your new location; this may include moving outside of the country.
- Maximize medical expenses: There is a broad range of medical expenses that can be claimed. Consider pooling together eligible medical expenses not only incurred by you, the tax filer but also your spouse/partner and dependent children in order to fully utilize your medical expenses.
- Utilize tax credit transfers: Be sure to claim any unused tuition/education, age, disability and dependent credits from your spouse and/or children to avoid losing their tax savings benefits.
- File your taxes early: The sooner you file your taxes to receive your refund, the sooner it will be deposited into your bank account. Don't file at the last minute. Even if you cannot pay your taxes, file them anyway - this will avoid any late filing penalties.
Tips for small business owners
- Maximize tax credits and deductions: Small businesses can take advantage of various industry specific tax credits, including the Industrial Research Assistance Program (IRAP) and the Manufacturing and Processing Profit (M&P) deduction. They may also claim Scientific Research and Experimental Development (SR&ED) expenses, interactive digital media, co-op, and apprenticeship tax credits.
- Classify Capital Cost Allowance properly: It is critical for small business tax filers to classify their capital expenditures to the appropriate Capital Cost Allowance (CCA) pool in order to get the correct percentage tax deductions available.
- Review your tax structure and owner remuneration: Tax rules and business circumstances often change, and effective tax planning involving your current structure and methods of remuneration is a very important component to save or defer tax for a business owner. Business owners should consider their tax filings accordingly to increase their tax savings opportunities.
KPMG spokespeople are available to share tips that individual tax filers and small business owners should keep in mind to help better maximize their tax strategies and refund opportunities.
"Tax filing can be daunting for some individuals but it is important to be aware of the tax deductions and claims that are available in order to save some hard-earned dollars."
- Paul Woolford, Partner, KPMG Enterprise
"Business activities and owners' circumstances can change over time and this can impact tax planning and your corporate structure. Business owners need to be aware of and understand the tax planning opportunities available to them in order to help grow their business and personal wealth."
- Deb MacPherson, Partner, KPMG Enterprise
About KPMG Enterprise
KPMG Enterprise™ is a network of professionals devoted exclusively to helping business owners and entrepreneurs build value and grow thriving enterprises in Canada. Why is that important for business owners and entrepreneurs? Based on their understanding and experience of what private companies face every day, KPMG Enterprise business advisers can provide proactive and effective advice about financial, business, and operational challenges, ultimately helping owners and entrepreneurs build value in their businesses and grow successful private enterprises. Visit kpmg.ca/enterprise.
KPMG LLP, an Audit, Tax and Advisory firm (kpmg.ca) and a Canadian limited liability partnership established under the laws of Ontario, is the Canadian member firm of KPMG International Cooperative ("KPMG International"). KPMG member firms around the world have 155,000 professionals, in 155 countries.
The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss entity. Each KPMG firm is a legally distinct and separate entity, and describes itself as such.
SOURCE: KPMG LLP
For further information:
National Coordinator, Communications
KPMG in Canada
416 777 8916
National Senior Manager, Communications
KPMG in Canada
416 777 8169