You Can Run, But You Can’t Hide!
I recently met with a new client whose marriage is on the rocks. So much so that she and her husband were meeting with a marriage counselor the day after I met with her. It seems she told him she would take care of his bookkeeping. She had taken accounting in college and a few years ago worked for a tax return company. Well it wasn’t done and one of the results was that the Workers Safety Insurance Board (WSIB) added their unpaid bill to their personal Property Tax Bill.
As with most small to medium sized companies in her husband’s particular industry, the economy has had a real impact on their revenue, and profitability these past few years. My client had an accountant complete and file their 2008 personal tax returns and she calculated the GST. What she failed to do was submit the GST return. She thought that since they couldn’t afford to pay it there was no reason to send it in.
As a result, last month the Canada Revenue Agency (CRA) froze his business account. Deposits can be made but nothing can be paid or transferred from that account until a settlement has been reached regarding the GST that he owes. And, as with all estimates from the CRA, the amount is much greater than what is actually owed, but the CRA doesn’t know that. And they won’t until she submits the GST report.
So now at my office we’re trying frantically to pull all the information together for their 2009 and 2010 business and personal tax returns so this situation doesn’t continue to snowball. She in the meantime is trying to locate the 2008 GST return.
This is certainly not the first time a client has come to me with bookkeeping and tax problems because a spouse has put the proverbial hammer down. I think all of us have some procrastination in us, some more than others. And I’m the more than less in some areas of my life. The point I’m trying to make is that if it creates tension, yelling, exhaustion, and health issues in your household or business environment, that’s only a tip of the iceberg if it affects the CRA. As you can see, you can run, but you can’t hide. Don’t put yourself, family or business partners in that position. Get help to get done what needs to be done, and move on.
How about you? Can you relate to this story? I love getting feedback. Here on this blog, you’ll get commentluv. This is a plug-in that allows you to leave a link back to your own site when you leave feedback.
Until next time,