A small-business owner, who has not kept up with their taxes, is concerned that their receipts and bookkeeping haven’t been recorded properly, and they want to know if a ballpark estimate can be made and submitted to the Canada Revenue Agency (CRA). Since the burden of proof is on the company, the best advice is for them to hire a bookkeeper or accountant to go through their business records and recreate the books. In the event of a review or audit, any company estimating could be subject to paying significantly more without proof.

Key Takeaways:

• After not filing taxes for a couple years, a small business wants to know if they can file late taxes through estimation.
• Business owners are required to keep accurate records each year, so hiring a good accountant to get caught up is imperative.
• File late taxes as soon as possible to minimize penalties and interest.

“By not keeping records, you are inviting CRA to do the estimating for you—and they will estimate high.”

Read more: http://www.moneysense.ca/save/taxes/cra-after-failing-to-file-taxes-for-three-years/