Self-employed expenses

March 14th, 2006 by Questions

I am self-employed and have not filed tax returns for 4 years as I am unable to pay. It is a service business and I’ve incurred less than approx. $3000 in expenses each year. It would be a real challenge to document these expenses as I do not have good records. I do have an accurate listing of my revenue.

It is very likely that I will have to file for bankruptcy as I also have other debts. If I’m filing for bankruptcy, is it worth it for me to even try to determine these expenses since it won’t reduce my income substantially? Could I just file my tax returns not showing any expenses “just to get them done?” (CRA has assessed me taxes and CPP (and interest and penalties) for these years based on an earlier higher-income year — actual taxes/CPP would be much lower once I file my returns).

Questions

One Response to “Self-employed expenses”



March 16, 2006 at 8:40 am, A licensed trustee said:

I think you’ve answered your own question. We cannot advise you on how to file your taxes or whether or not you should be taking the time to claim all of your deductions.

I will tell you that if you intend to remain self-employed then you had better improve your record keeping. Either hire a bookkeeper or take a course so that you can do it yourself.

If you don’t then in 3 years you’ll be right back where you started and what’s the point in that.

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