In the previous past, the ATO has improved its examination for payroll tax remittance. The scrutiny is set to obtain to employers who collect taxes from workers and neglect to remit the taxes in a timely manner. According to report released by the Treasury Department some payroll taxes are not really paid to the ATO every year. The quantity is most especially high in tough economic times as is currently experienced in Australia. Presently, as a result of the extent of skipping by employers, the ATO is having more measures to deal with this noncompliance. Some of the approaches that the ATO is using to get to the non-compliant business are by taking a random sample of employers and executing a payroll tax audit.

Supposing that the ATO reaches a company who has neglected to remit collectable taxes, it may get both local and illegal charges against the employer. Several of the implications of non-remittance of payroll taxes are offered shown below:

Collect Back Taxes and Penalties – Once the ATO has come to a defaulting company, they will seek recovery of back taxes, charges, and interest for unpaid taxes. Charges for non-remittance of payroll taxes may possibly be quite high and can conveniently push an organization closed.

Search for Recovery from Obligated Men and women – The ATO can look for recovery of overdue taxes plus fines and interest rate from either the business or from accountable officers. This indicates that the ATO can seek recovery from even an employee whom they feel is liable for the non-remittance. Other responsible professionals who would be gone for to pay for the non-remitted taxes include the owners of the business or organization, the book keepers, the treasurer, or even creditors of the company who would have control over the business account and who would be prioritizing their debt recovery at the peril of remittance of payroll taxes.

Look for Additional Penalties for Pyramiding – Pyramiding is a terminology used to refer to employers using payroll taxes as working financing either temporarily or for a long period of time. In other words, employers accumulate taxes and use the funds to pay other spending or buy stock and thus employing tax money for revenue. Even though the company does at some point remit taxes and pay the essential interest and charges, the ATO can still seek additional penalties for using their cash in your business transactions. This cost may come over and above the regular fines.

Seek Criminal Charges – Aside from civil consequences, the ATO may also go after illegal charges. Business owners who have been found guilty of embezzling acquired payroll taxes have paid fines as well as been punished jail conditions.

Non remittance of payroll taxes has this type of dire consequences and it may not be worth it. For that reason, in the event that you are a business owner, an accountant, book keeper, or have any accountability for the compilation or remittance of payroll taxes, it is sensible to assure that such gathered taxes are paid in within the required cutoffs.

If you own a business, you would understand that it takes a lot of time, resources and effort to get all your financial records in place. A proper book keeping is very important for your business, especially at the time of filing your taxes with the IRS (Internal Revenue Services). You need to keep track of all your revenues, profits, losses and expenditure. This needs to be filed during the time of taxes. This is also called Federal Taxes. But during this season, if you realize that you need more time to gather this information, you can get the same by filing a Tax extension with the IRS.

What is a business tax extension?

The business tax extension means that you can file for all your business taxes at a later date by filing for an extension with the IRS before the tax day. You can get more time to gather all your finance related information and then file for the same. This way, you can collect all the required information and not make any mistakes in the actual tax filing.

How much extension will you get?

Once you file for an extension, you are automatically eligible for that extended time to file your taxes. Depending on the type of business that you run you are eligible for an extension of five or six months.

How to file for a tax extension?

All you need to do is the fill in form 7004 with the IRS. This is an automatic tax extension form. Once you fill in your details and send it, you will be eligible for a business tax extension. Remember, this form is only for tax extension of finances related to your business. All personal tax related items cannot be filled in this form.

You need to provide your name, employment details, business details, business location and your SSN (Social security number) at the time of filling the form 7004. You do not have to mention the reasons for a tax extension.

There are two ways to file for a business tax extension. You can manually fill and submit the tax extension form 7004 with the IRS or you can do the same online. The advantage of filing your tax extension online is that, you can also pay your taxes online.

Things to remember

•    Tax extension does not mean that you can delay paying your taxes to the government. Tax extension only means that you can file your taxes at a later date.

•    You need to file your business tax extension before the tax day, failing to do so makes you eligible for a huge penalty for late tax filings.

•    You need to make sure that all the details that you fill in the form are correct. If there is any mismatch in the details that you provide to the IRS, the IRS can reject your plea.

•    You also need to make sure that you do not owe any amount to the IRS from your previous tax years. If you owe a huge amount of money to the IRS, then the IRS can reject your tax extension plea for the current fiscal year.

Taxes South Africans Pay

In the following article we will consider the main ways in which South Africans are taxed.

Income Tax

Income tax is the government’s main source of income and is levied in terms of the Income Tax Act, 1962. This type of tax is levied on a South African residents’ worldwide income, with appropriate relief to avoid double taxation. Non South African residents are taxed on their income from a South African source. Tax is levied on taxable income; which in essence consists of the gross income less exemptions and allowable deductions as per the Income Tax Act.

In respect of the 2011 year of assessment, companies are taxed at a rate of 28%. In addition to this, secondary tax (STC) is also levied on companies at a rate of 10% on all income distributed by way of dividends. For Gold mining companies a specific tax formula applies.

Small-business corporations with an annual turnover of less than R14-million benefit from a graduated tax rate of 0% on the first R57 000 taxable income, 10% from R57 001 to R300 000 taxable income; and R24 300 + 28% in excess of R300 000 taxable income. These corporations can also write off certain investment expenditure in the year in which it is incurred.

Value Added Tax (VAT)

Value Added Tax (VAT) is levied at a standard rate of 14% on all goods and services subject to certain exceptions, exemptions, exceptions, adjustments and deductions provided for in the amended VAT Act 89 of 1991.

VAT is levied on the supply of all goods and services rendered by registered vendors for all business operations. It is the government’s second biggest source of income. VAT is also levied on the importation of goods and services into South Africa. It is levied at the standard rate of 14%, but certain supplies are subject to a rate of zero or are exempt from VAT.

Capital Gains Tax

In October 2001, Capital Gains Tax (CGT) was introduced. It forms part of the income tax system and includes taxable income capital gains that are made on the disposal of assets.

Excise duty

Excise duty is levied on certain locally manufactured goods as well as on their imported equivalents. This duty is specifically levied on tobacco and liquor, televisions, audio equipment, motor cars and as an ad valorem duty on cosmetics,

Relief from Excise duty is available on specific farming, forestry and certain manufacturing activities. Relief is also available where excisable products are exported.

Transfer duty

Transfer duty is payable by individuals when they acquire property at progressive marginal rates that range between 0% and 8%. When property is not acquired by an individual, but an entity such as a company or trust, transfer duty is payable at a rate of 8%. All transactions relating to the taxable supply of goods that are subject to VAT are exempt from transfer duty.

Estate duty

For the purposes of estate duty, an estate consists of all property of the deceased; which includes deemed property, such as life-insurance policies and payments from pension funds, wherever they may be situated. However, the estate of a deceased non-resident consists only of his or her South African assets. The duty, at a rate of 20%, is calculated on the dutiable amount of the estate. There are certain admissible deductions from the total value of the estate are allowed.

Stamp duty

Effected from 1 April 2009, the he Stamp Duties Act of 1968 as been repealed. No stamp duty is liable on leases of fixed property executed on or after that date.  If a lease agreement was executed before 1 April 2009, stamp duty is still levied on leases of fixed property.

Uncertified Securities Tax

Uncertified Securities Tax is payable in respect of the issue and change in beneficial ownership of any securities that are transferable without a written instrument and are not evidenced by a certificate; and if the issue and change in beneficial ownership took place prior to 1 July 2008. It is levied at a rate of 0,25%. The Uncertified Securities Tax Act of1998 was replaced by the Securities Transfer Tax Act from 2007; and therefore provisions are applicable in respect of every transfer of any security on or after 1 July 2008.

Skills Development Levy (SDL)

The Skills Development Levy is a compulsory levy scheme for the funding of education and training. SARS administers its collection. The rate is 1% of a payroll and is payable by employers who are registered with SARS for employees’ tax purposes, or employers who have an annual payroll in excess of R250 000. As from 1 August 2005, the amount of R250 000 has increased to R500 000.

Unemployment Insurance Fund (UIF)

The Unemployment Insurance Fund (UIF) provides short-term relief to workers if they become unemployed; or are unable to work because of maternity or adoption leave, or illness. It also provides relief to the dependants of the deceased contributor in terms of the Unemployment Insurance Act. The bulk of contributions to the UIF is collected by SARS and is transferred to the fund, which is administered by the unemployment insurance commissioner.

Air passenger tax

Fee-paying passengers departing on international flights pay a tax of R110 (R120 which was effective from 1 August 2005) and passengers flying to Botswana, Lesotho, Namibia and Swaziland pay R55 (R60 which was effective from 1 August 2005).

Donations Tax

Donations Tax is tax payable on the value of property disposed of by a resident by means of a donation. Donations tax is levied at a flat rate of 20% on the value of the property donated.

Retirement Funds Tax (RFT)

The Tax on Retirement Funds Act, 1996 (Act No. 38 of 1996) has been repealed with effect from 1 March 2007.

Other taxes

Other taxes include provincial gaming taxes. Local governments also finance the cost of municipal services by levying rates on the value of fixed property. For more information regarding South African Tax, contact Tax Realx today.

When you are moving overseas to Canada, the first thing that needs to be sorted out is the Expat Tax which will be levied on you if you are a U.S. citizen. Even if you move overseas then also you will have to pay the taxes regularly as the country vigorously pursues the taxes for their citizens worldwide. You cannot even give up your U.S. Citizenship to eliminate the process of paying tax to the U.S. government.

To prevent one from the complexities you need to do so, even if there is no earning as there is the Statute of Limitations on tax disputes which you will have to keep in mind because if there is any dispute on the back taxes, you will be in a tax dispute if you do not file taxes regularly. There are detailed information bulletins provided by the IRS for the citizens, even those who are living abroad regarding the payment of the taxes which can be consulted to get clear ideas.

The maximum threshold for earning that is tax free in U.S. is latest of around $95,100 of income earned in a foreign country. The earned income is categorized here and the other aspects such as rental income, interests, capital gains and other dividends are not included under the category of earned income and they will all be subjected to taxation. And the earned income exclusion is also only applicable when you file the tax return.

There are some additional aspects for Canada U.S. Tax Preparation on which the expats are excused from paying taxes such as the housing limits. In addition to the concept of earning exclusions, the expatriates are also given the tax breaks on the housing costs. In this way the US citizens can exclude the portion of their income that they spend on the housing and rentals or the property costs. But for that, you will have to certify that you are a bona fide resident of the foreign or host country to claim the tax exclusion from the U.S. government.

One point to be particularly noted for Canada Us Income Tax Convention is that whatever income that falls above the amount decided by the government for exclusion will be taxed after giving scopes such as application of housing allowances and maintenances.

In this way, you get a clear idea from the website on the type of taxes you need to pay, in what amount as well as where you are eligible for tax exclusions and thus, save the hard earned money from paying taxes. You can check out the online websites regarding the services, the types of taxes levied as well as the exclusion of taxes if possible which is applicable according to the  eligibility of the candidate filing income tax returns. In such cases if you are not quite sure of the regulations you can hire an expert tax accountant to get you out of the situation in no time at all.

The electronic filing mandatory issued by government states, “as of 2013, any tax preparer paid to file more than 10 T1 individual returns or T2 corporate returns must file electronically. The preparers can be fined $25 for each T1 and $100 for each T2 if they do not do so”. After this declaration the Canada Revenue Agency (CRA) revealed, 53 percent of 28.3 million tax returns filed in 2014 were filed using eFile. The system tax preparers use to file electronically on behalf of their clients. Owing to this mandate, most Canadians are hiring tax preparation Services in Surrey to do the job. With so many Canadians, opting for this job it becomes hectic for you to realize if the right person is doing the work in the right manner. Here are some of the things to consider when you hire Income Tax Accounting in Surrey.

Understand Your Circumstances

Check the kind of deductions you will be a part of. Do you have a simple return with T4 or own a myriad number of items to report? Take a good look at the qualifications of the tax preparer/accountant and see the kind of return he files. If he prepares the same kind of taxes like you have, then look no further as he is the right person to do the job.

Know What You Want

Another primary thing to keep in mind is know what you need from your tax preparer. Your requirements may vary; you may require someone to fill out your tax return. You may also require going the extra mile and doing the extra work for you. There is several tax preparers who can do just form fill ups, but only professionals can go the distance and do more.

Compare Prices against Services

Some tax preparation services and Tax Accounting Services in Surrey have a set fees that vary based on the complexity of the return. A professional accounting service can cost hundreds or thousands based on the type of work they are doing. Any tax planner who does preparations of returns will always charge a little higher. When choosing a tax planning and accounting service, find out what services are included for the fees they are charging you. Some preparers offer year long service, while some just take care of tax preparation only during the filing days.

File Electronically

Electronic filing is crucial and in this modern age, it is necessary. So if you are not yet doing things electronically, you are lagging behind. Basically, you are in the Stone Age. Electronic filing ensures that you get faster refund. Under the Income Tax Act, the CRA has three years from the date of notice of assessment to audit the return, provided you have not done anything illegal or evaded taxes earlier. If you follow the right procedures, file your taxes on the right time, you reap the benefits of proper income tax filing. Proper tax preparation Services in Surrey will guide you to do what is right.

Companies need to file taxes forms quickly according to transaction occurred during a tax year. But, it is not easy to take out exact taxable income after processing the different forms occurred during a year. To process the forms quickly, the help of taxation experts are taken by the companies to process quickly. But, it is done through the online media to complete the process quickly without facing any problem that occur in traditional method. Numerous problems are faced by a taxpayers filing through traditional method which don’t come in online. This is why most of the companies are filing their form through online media to enjoy tax payment and filed on time to avoid penalty. This is why more than 75% of companies are filing their tax forms through online media. It is fast, cheap, efficient, and risk free as arises in traditional methods. Let us look at the reasons to file taxes forms to the government through online media.

Numerous companies are coming in the market to promote product and sell to the consumers. But, companies require skilled professionals to manage the official work and lead to growth in market. The employees contribute for the growth of company nicely to the fast growth. To acknowledge the contribution of the employees, companies provide wage monthly at the time of employment. But, the companies need to show the total wages to IRS. File W-2 online to show the total wage-tax statement to the IRS quickly. It enables the companies to show the total income of the employees within a short time. It helps the employees to file their taxes forms immediately according to their income to the IRS. But, if it is done through traditional method takes lots of time and money for the companies.

Apart from the regular income, the companies pay special privileges to the employees during a year. The different miscellaneous income paid to the employees is social security, medical insurance, renting, royalties, crop insurance, and awards. But, the total miscellaneous incomes paid to the employees need to be shown in the tax statement. A special form need to be filed by the employees if the total miscellaneous income is more than 600 dollars annually. File 1099 misc form to show the miscellaneous income of the employees during a tax year. It enables the employees to file their taxable income and file for tax return immediately. Hence, it is essential for the companies to issue this form and file the taxes accordingly.

Financial problem is the most acute obstacle face by the companies during the business. It requires lots of money in running the business nicely and gain profit. But, many times the financial constraints can be managed by mortgaging the property to gain money with a fixed rate of interest at the end of tax year. But, the amount needs to be returned at the end of tax year. File form 1098 online to show mortgage statement of the companies along with interest paid to financial institute. Further, the companies can show the taxes forms to IRS by outsourcing the work to tax professionals found in market. Take help of our taxation experts in filling the forms at affordable price of the market.

Section 64 of Income Tax Act says that Income derived from the money or assets transferred by an Individual to spouse, directly or Indirectly, otherwise than for an inadequate consideration shall be clubbed and hence taxable in the hands of Transferor.

For Instance: If Mr. A purchase a house (Rs.20,00,000) on 01’April’2015 on his wife’s name who has not contributed any amount to purchase it ,
Rental Income earned on it throughout the year (Rs.25,000 X 12 months=Rs.3,00,000)
In that case on application of provisions of Section 64 , that whole income of Rs.3,00,000 will be clubbed in the hands of Mr. A and accordingly Mr. A required to Pay Income Tax on whole of it.

Provisions of section 64 will apply only if the relationship of assessee and spouse exist on the date of transfer of assets and accrual of income.

Now, To cut your taxes without invoking the provisions of Section 64, Mr. A should have to give a loan to his wife for Rs.20,00,000 in exchange she can give a small amount to him (Mr. A ) that represent Interest on unsecured loan.
In that case the Rental Income earned on the said property would become chargeable to Tax in the hands of wife of Mr. A on whose you can claim the benefit of Slab Rate & 87A again , which consequently result in payment of Taxes at very very lower amount.

If you made various investment and paid taxes on it at higher rates then you can save lot of taxes by diverting those investments to your spouse; by this you can use additional slab of Rs.2,50,000.

If you had made certain Fixed deposits with Bank or Financial Institutions on which you earn an income of Rs.10,00,000 per annum , consequently you need to Income Tax of Rs.1,25,000 on it ,However if you divert half of your Fixed deposits on spouse’s name in that case you and yours spouse Income Tax Liability will be reduced to Rs.50,000
By this simple tool you can save your Taxes without doing any extra or special.

Some other ways to save Income Tax by Investing money on Spouse’s name are :
• Depositing Money in PPF (Public Provident Fund Account) on which interest is fully exempt
• Sale of Shares/Securities after the expiry of 1 year from the date of purchase.
• Contribution of sum toward Life Insurance Premium on spouse’s name.
• Payment of Medical Insurance premium for spouse
• Payment toward Preventive health checkup of spouse
• Payment of Interest on Education loan for higher education of spouse
• Amount paid for Medical Treatment for Specified Special disease of Spouse.
For more information visit:- https://taxzippy.com/

Every tax debt situation is different from the other so each has a more appropriate way in resolving them. Having IRS back taxes is a big headache and you should seek help so to keep these matters settled right away. You wouldn’t want IRS to enforce its authority on you or else, it would be your biggest mistake neglecting your tax debts. You must understand your rights and options for getting out of tax debt.

Tax resolution firms advertise on television and radio with ads claiming that they can settle your tax balances owed to the IRS and only they know how to do it. In The Complete Tax Debt Resolution System we show you step by step how you can ask the IRS to reduce your taxes on your own!

This settlement program is known as the IRS Offer in Compromise (OIC) program. The federal government reported that in 2010, more than 16 million taxpayers owed money to the IRS, and these numbers have continued to increase. So, don’t feel alone! The OIC program could be an excellent way for you to reduce your back owed taxes. 

You may have recently seen TV commercials or have heard radio ads that promote the IRS’s Currently Non Collectible Tax program—also called the CNC Tax program or IRS Hardship program. There is great news to share with you! If you are experiencing an economic hardship and can’t repay your tax debt right not, you may qualify for currently non collectible (CNC) status with the IRS to resolve your back-tax liabilities.

An installment agreement with the IRS allows you to pay your tax debt in monthly payments. To qualify for an installment agreement, you must be what’s called “currently compliant.” This means you have filed all required tax returns.

When it comes to setting up an IRS payment plan, you have several options to choose from. In general, the type of arrangement you can obtain depends on the amount of taxes that you owe and how quickly you are able to pay. You should always file your returns on time and pay as much of the balance due as possible, but if can’t pay in full, you are not out of options. One option is the IRS Fresh Start program.

Learn how to resolve and end your IRS back tax problem without spending thousands on a tax relief company. Owing IRS back taxes can be stressful-this FREE tax report will show you how you can end your IRS back taxes without a tax attorney or tax lawyer. You don’t need to hire a tax attorney for thousands of dollars! You can stop wage garnishments, bank levies, and learn to set up your own affordable monthly payment plans without a tax attorney. Learn for FREE!!!!

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