Busted! Don’t Believe These Tax Myths!

For an average taxpayer, understanding the tax filing process is confusing as it is, and trying to find how much tax deduction you can make when to claim a tax refund, or what income is tax-free, and so on can seem exhausting. In such situations, it’s important to consult with a knowledgeable and reliable tax advisor to help you with your tax decision. They can create an effective tax plan for you and ensure you stay above your tax obligations.

However, there is a lot of misinformation floating around taxation, leading taxpayers astray. Believing in these myths may affect how you report your taxes and make financial decisions. To help you understand the truth about taxes, The Tax Shop Inc. has debunked three of the most widely believed myths about tax.

Myth 1: RRSPs (Registered retirement savings plan) reduce taxes
RRSP providers want to sell you RRSPs. RRSPs are a tax planning tool. They defer tax to a later date giving the taxpayer the impression of tax savings. At The Tax Shop Inc., we work with you to create a long-term tax strategy that fits your individual financial goals.

Myth 2: My co-workers should pay the same taxes as I do
Everyone has different circumstances in their life. Your co-worker’s financial situation may not be the same as yours. As a result, they don’t have to pay the same amount of tax as you do. Our team at The Tax Shop Inc. can explain to you the differences in detail and how they affect your taxes.

Myth 3: I do not have to deal with questions from the Canada Revenue Agency (CRA)
If the CRA inquires about your taxes, they will not go away. They will continue to send you notices and charge interest on unpaid amounts until you take action. If you’re unsure about the tax laws, it’s advisable to obtain professional advice instead of being afraid of the CRA like most people. At The Tax Shop Inc, we work with the taxpayer and CRA to solve the issue in a mutually acceptable manner.

If you’re looking to steer clear of these tax myths, reach out to The Tax Shop Inc. As one of the best tax consultants in Brampton, ON, we provide tax and accounting solutions for small and mid-sized businesses throughout the private sector. Our services include accounting, bookkeeping, payroll, and various tax services for individuals and corporate clients. We extend our service to clients across Brampton, Mississauga, Milton, Oakville, Toronto, Burlington, Guelph, Halton Hills, Caledon, Vaughan, Markham, Aurora, Newmarket, and Erin, ON.

For a complete list of our services, please click here. If you have any questions about tax or accounting, we’d love to hear from you. Please contact us here.