The Taxman Cometh this Week for Canadian Small Businesses

TORONTO, ONTARIO--(Marketwire - June 26, 2012) - With the tax deadline fast approaching on Friday for the majority of small and medium-sized Canadian businesses, anxiety is on the rise for business owners scrambling to get their taxes in order. To help ease some of the stress, legal expense insurance provider DAS Canada is opening up its toll-free legal advice hotline to SMEs across Canada seeking answers to their legal tax questions and concerns.

"Canadians have just finished dealing with their personal taxes, and now many Canadian small business owners have to repeat the entire process again," said Barbara Haynes, CEO of DAS Canada. "Particularly for smaller companies, filing can be both complicated and anxiety-inducing. Owners are fearful of possible legal or financial repercussions if they make a mistake, not to mention the threat of an audit."

While each individual business has its own challenges, there are a number of universal tax concerns among SME owners. The most common questions/concerns include:

1. Proper reporting of Income and Expenses:

For smaller and newer businesses, it might not always be completely clear what constitutes income, but the onus is on you to figure it out, because if you don't properly report income, it could result in a financial penalty.

2. Filing on Time:

• It's important to know which tax period applies to your business, as they differ depending on your structure. For sole proprietorships, professional corporations that are members of a partnership, and partnerships where at least one member is an individual, professional corporation or other partnership, income is reported on a calendar year basis.
• In some cases, sole proprietors or partnerships can request a non-calendar fiscal period of reporting.
• Corporations' tax years correspond with their fiscal year end with returns having to be filed within 6 months of the end of this period.

3. Knowing and Using Applicable Deductions and Credits:

The Federal Government and individual provincial governments all offer a number of tax credits and deductions. These usually change annually, with new credits and deductions becoming available and in some cases, existing ones being eliminated.

Such changes can become complicated and confusing; understanding which apply to your specific business type and structure will make it easier to ensure you are able to take advantage of any eligible opportunities.

4. Audits:

According to a report by the Canadian Federation of Independent Business, 28% of small businesses have been audited by CRA within the last 3 years. One of the best ways to avoid auditing is to keep your records in order. Incomplete or unorganized records can force the CRA to assess a business' income via alternative methods.

To address these and other concerns and questions, small and medium-sized business owners are invited to call DAS with their legal tax questions. The hotline will be available from 9:00 a.m. to 5:00 p.m. daily, starting Monday, June 25 and ending Friday, June 29. Small business owners can call 1-888-582-5586 and quote code TAXFREE during that period to have access to qualified legal advice on their tax issues.

The hotline is a staple benefit for all DASbusiness policy holders. The policy is designed to protect businesses against the cost of potential legal disputes, allowing them to focus on their core business while knowing that their legal counsel and expenses are covered if and when the need arises. The company's call-center provides policyholders with direct access to legal experts to assist them in determining the best course of action in a given situation.

About DAS Canada

DAS Legal Protection Insurance Company Limited (DAS Canada) is a subsidiary of DAS Group, a global leader in the ten billion dollar legal expense insurance market. DAS Group is based in Germany and is a subsidiary of ERGO, Munich Re's primary insurer in Europe and Asia. DAS Canada is committed to bringing a fresh, modern approach to the marketplace, combining a forward-thinking attitude with almost a century of expertise. A full-service specialist in legal expense insurance, DAS Canada offers access to affordable justice for individuals, groups and small and mid-sized businesses. Policies are currently available in all Canadian Provinces and Territories. For more information, please visit www.das.ca.