Canada Tax Returns Processing
How the spark of imagination ignites the biggest opportunities. Our services, our people, and our passion can fuel that kind of business growth - to take our customers’ business further, faster. PIONEERING is the key word for our vertical growth and success in rendering outsourcing services to Canada. Read on to understand our capabilities.
In India, we are the first and the only company in India to have served the Canadian accounting firms in the taxation and accounting arena for three successful years. We pioneered in rendering tax and accounting services in association with top accounting firms. Datamatics today serves as the extended office and help in processing individual and corporate tax returns and provide corporate accounting and write-up services.
Services Offered
We offer an array of outsourcing solutions for Canadian Tax Return processing in the areas of:
- Personal taxation
- Corporate taxation
Personal Taxation
Processing of personal tax returns commenced in January 2002. Knowledge about personal taxation was self-acquired, with hands-on experience on practice cases, with the aid of a conceptual book, and the help feature in the software.
Thereafter, we have successfully completed three tax seasons of processing personal tax returns and grown at an astonishing rate of more than 400%. In the past three years, we have moved up the learning curve at a very fast pace considering the fact that from the third year onwards, we have also started offering tax optimization services, like transferring unused tuition credit, verifying medical, RRSP, child care benefits, donations, etc. are claimed in a manner that is most beneficial to the taxpayer and spouse, etc.
We are currently looking at mastering the tax knowledge to an extent where we can handle some tax planning issues like working out an optimal mix of business taxes and personal taxes for owner – managers, etc.
What we do?
Specific activities:
- Review supporting documents received
- Sort the documents between taxpayer, spouse and children
- Bookmark the documents in the order of the T1 for each person
- Advise CA on missing / incomplete documents
- Seek clarification on doubts / inconsistency in returns
- Complete returns using Personal Taxprep / Profile
- Review returns files for data entry accuracy
- Use the Tax Prep Express efficiently for exporting / importing data
- Verify that returns are clear of the diagnostic warnings
- Verify that the returns are ready to be e-filed
- Offer tax optimization services
Ancillary activities:
- Update our knowledge with the latest budget and technical amendments.
- Prepare and continuously update our in-house prepared manuals.
- Design a complete training and certification module for the new recruits.
- Obtain the latest version of the applicable software.
- Processing of Non-Resident Income Tax Returns – We processed approximately 100 non-resident returns, with information received with respect to the investor splits, etc.
Corporate Taxation
A team of two members visited the client office in Toronto to acquire conceptual and system knowledge in relation to preparation corporate tax returns in the later half of 2002 and thereafter there has been no looking back. Thereafter, on-line training programs are conducted by the client for constant up-gradation of knowledge.
In the span of two years, the team has processed large number of returns and has developed the proficiency to process Federal and Ontario returns.
The task of processing of Corporate Income Tax Returns involves the following activities.
- Review prior year’s return and roll it forward to the current year.
- Import / input financial data from the financial statements into the current year’s return.
- Prepare the current year’s federal return and the various schedules by referring to the prior year’s return, current year’s financial statements & tax implications.
- Prepare the provincial return by completing the CT23 and other schedules.
- Entering the installments made in the year.
- Verifying the diagnostics.
- Reviewing the prior year’s Notice of Assessments.
- Noting any missing information from the prior year’s return.
- Pointing out any observations for the current year.