Canadian business owners face increased tax reporting complexity

Business owners in Canada are facing more challenges when filing taxes. The tax system is getting increasingly complex, which raises compliance costs for businesses. According to Luigi De Rose from PwC Canada, the number of changes is significant. There are over 400 tax credits and deductions available, making it hard for business owners to keep track. Yannick Lemay from H&R Block noted that these do not include specific expenses that can also lower taxable income. To manage this complexity, Lemay advises business owners to start their tax preparations early. Waiting until the last minute can add stress and difficulty. While individual taxes are due on April 30, self-employed returns are due on June 15. However, payments for self-employed taxes are still due by April 30. This year, there are some notable changes in tax legislation. A proposed increase in the capital gains inclusion rate will not go into effect as it has been delayed. Originally, the government planned to raise the rate for large gains but reversed this decision in January. Nevertheless, the proposed increase in the Lifetime Capital Gains Exemption from $1 million to $1.25 million is still set to happen. Despite the confusion, business owners can find some relief this tax season. Clear awareness of the changes and preparations are key for navigating the complicated landscape.