Question 1

What should I do if I receive a CRA audit notice?

Accepted Answer

Contact Ahmed Jama CPA immediately at (780) 782-9429. As a former tax auditor, Ahmed can interpret what CRA is asking and build a response strategy. Don't respond to CRA directly. Anything you say can be used in the audit.

Question 2

What is the CRA voluntary disclosure program?

Accepted Answer

The Voluntary Disclosure Program (VDP) lets taxpayers voluntarily correct errors before CRA discovers them. Successful applications can avoid penalties and prosecution. Ahmed has filed numerous VDP applications for clients.

Question 3

How long do I have to file a notice of objection?

Accepted Answer

You have 90 days from the date on your notice of assessment to file a notice of objection. This deadline is strict. Missing it can eliminate your right to challenge the assessment. Call (780) 782-9429 immediately if this deadline is approaching.

Question 4

What is a CRA proposal letter?

Accepted Answer

A proposal letter outlines CRA's intended reassessment before it's issued. You typically have 30 days to respond. This is a critical opportunity to prevent the reassessment. Ahmed responds with documentation and arguments that can stop it entirely.

Question 5

What types of CRA audits exist?

Accepted Answer

CRA conducts correspondence reviews, desk audits, field audits, payroll audits, and GST/HST audits. Each has different scope and procedures. Ahmed handles all types with insider knowledge from 5 years conducting audits.

Question 6

Can I appeal to the Tax Court of Canada?

Accepted Answer

Yes. If your objection is denied, you can appeal to the Tax Court of Canada. Ahmed prepares the appeal and coordinates with tax litigation counsel when needed. His tax auditor background helps him understand how CRA builds its case.

Question 7

What is Ahmed's success rate with CRA disputes?

Accepted Answer

Ahmed Jama CPA represents clients in CRA disputes with the advantage of insider knowledge from 5 years as a tax auditor. Past results do not guarantee future outcomes, but Ahmed's background means he understands how CRA builds its case and how to respond effectively.

Question 8

What is a T2 corporate tax return?

Accepted Answer

A T2 is the corporate income tax return every incorporated Canadian business must file annually, even with no income. It reports net income, taxes payable, and credits. Ahmed prepares T2s with GIFI schedules, CCA, and small business deduction claims.

Question 9

When is the T2 filing deadline?

Accepted Answer

The T2 is due 6 months after your fiscal year end. For a December 31 year end, that's June 30. The tax balance is due 2 months after year end for non-CCPCs, or 3 months for CCPCs.

Question 10

What is the small business deduction?

Accepted Answer

The small business deduction provides a 9% federal rate on the first $500,000 of active business income for CCPCs. Combined with Alberta's 11% rate, the total is approximately 20% on eligible income.

Question 11

What schedules are in a T2 return?

Accepted Answer

Standard schedules include Schedule 1 (net income), Schedule 100 (balance sheet), Schedule 125 (income statement), and Schedule 200 (Alberta tax). Additional schedules cover CCA, losses, and dividends.

Question 12

What happens if I file my T2 late?

Accepted Answer

CRA charges 5% of the balance owing plus 1% per month for up to 12 months. Interest compounds daily. Repeat late filers face higher penalties. Voluntary disclosure may help if you've missed a deadline.

Question 13

Do I need to file a T2 if my corporation had no income?

Accepted Answer

Yes. Every incorporated business must file a T2 annually regardless of income or activity. Failing to file can result in penalties and eventual dissolution by the regulator.

Question 14

When is the personal tax return deadline?

Accepted Answer

April 30 for most individuals. Self-employed individuals have until June 15 to file, but any balance owing is still due April 30. Late filing triggers 5% penalties plus monthly interest.

Question 15

What credits can I claim on my T1?

Accepted Answer

Common credits include RRSP contributions, home office expenses, medical expenses, disability tax credit, tuition (T2202), childcare, and moving expenses. Ahmed reviews your situation to claim every eligible credit.

Question 16

How does the 2024 capital gains change work?

Accepted Answer

For gains after June 25, 2024, the inclusion rate is 2/3 for individuals on annual gains above $250,000. Gains below $250,000 remain at 1/2. Ahmed calculates the correct inclusion and explores timing strategies.

Question 17

What forms do self-employed individuals need?

Accepted Answer

Self-employed individuals file T2125 (business income) and landlords file T776 (rental income). Both require careful expense categorization. Errors here are the #1 CRA audit trigger for personal returns.

Question 18

Can I claim home office expenses as an employee?

Accepted Answer

Employees working from home more than 50% of the time can claim home office expenses with Form T2200 from their employer. Eligible expenses include a portion of rent, utilities, and internet.

Question 19

What is the RRSP contribution deadline?

Accepted Answer

RRSP contributions must be made by March 1 (or March 3 in leap years) to count for the prior tax year. Contributions reduce your taxable income. Ahmed helps optimize your RRSP strategy within room limits.

Question 20

Do newcomers to Canada need to file a T1?

Accepted Answer

Yes. New tax residents must file a T1 to report worldwide income earned after becoming a tax resident. Ahmed assists with date-of-entry calculations, foreign income reporting, and newcomer credits.

Question 21

When do I need to register for GST/HST?

Accepted Answer

Registration is mandatory when your taxable revenue exceeds $30,000 in a single quarter or over four consecutive quarters. Ahmed handles registration and sets up correct tracking from day one.

Question 22

What is the GST rate in Alberta?

Accepted Answer

Alberta charges GST at 5% with no provincial HST. This simplifies filing, but ITC rules and zero-rated supply classifications still apply.

Question 23

What are input tax credits (ITCs)?

Accepted Answer

ITCs let you recover GST/HST paid on business expenses. Ahmed identifies commonly missed ITCs, including vehicle expenses, software, and professional fees, to maximize your recovery.

Question 24

What is the Quick Method?

Accepted Answer

The Quick Method lets eligible small businesses calculate net GST using a simplified formula instead of tracking every ITC. Ahmed evaluates whether it benefits your specific business.

Question 25

What are the penalties for late GST/HST filing?

Accepted Answer

CRA charges a late filing penalty (greater of $250 or a percentage of net tax) plus daily compounding interest. Voluntary disclosure may reduce penalties if you've missed filings.

Question 26

What triggers a GST/HST audit?

Accepted Answer

As a former tax auditor, Ahmed knows the triggers: high ITC-to-revenue ratios, inconsistent filing, personal expenses claimed as business ITCs, and zero-rated supply classification errors.

Question 27

What bookkeeping services do you offer?

Accepted Answer

Monthly and quarterly bookkeeping including bank reconciliation, AP/AR tracking, QuickBooks Online management, GST/HST tracking, payroll records, and year-end packages for T2 and T1 preparation.

Question 28

Why choose CPA-managed bookkeeping?

Accepted Answer

Ahmed's 5 years as a tax auditor means your books are maintained with audit readiness in mind. He recognizes patterns that trigger audits and structures records to withstand scrutiny.

Question 29

Do you work with QuickBooks Online?

Accepted Answer

Yes. Ahmed sets up and manages QuickBooks Online including chart of accounts, bank feeds, categorization, and reconciliation. Your books stay accurate and CRA-ready year-round.

Question 30

How often should bookkeeping be done?

Accepted Answer

Monthly is ideal for most businesses. It keeps records current and catches errors early. Quarterly works for smaller operations. Both are available with fixed-fee pricing.

Question 31

What is included in a year-end package?

Accepted Answer

Reconciled financial statements, adjusted trial balance, GST/HST summary, payroll summary, and supporting schedules. All feeding directly into your T2 or T1 return.

Question 32

What is tax planning?

Accepted Answer

Tax planning is proactively structuring your finances and business to legally minimize tax before decisions are made. Ahmed uses tax auditor knowledge to build strategies that won't trigger reassessment.

Question 33

Should I incorporate my business?

Accepted Answer

Incorporation provides the 9% small business deduction on the first $500,000, liability protection, and income deferral. Ahmed evaluates whether it makes sense for your revenue and goals.

Question 34

Should I pay myself salary or dividends?

Accepted Answer

Salary creates RRSP room and CPP but triggers payroll taxes. Dividends are simpler but don't build RRSP room. Ahmed calculates the optimal mix for your situation.

Question 35

What is TOSI?

Accepted Answer

Tax on Split Income rules limit income splitting with family members through dividends. Exemptions exist for active business involvement. Ahmed structures splitting within CRA rules.

Question 36

How does the 2024 capital gains change affect planning?

Accepted Answer

The 2/3 inclusion rate above $250,000 for individuals changes the calculus for selling investments and assets. Ahmed develops timing and exemption strategies to minimize impact.

Question 37

When should I do year-end tax planning?

Accepted Answer

Ideally 2-3 months before your fiscal year end. This allows time for CCA purchases, salary bonuses, dividend declarations, and RRSP contributions before the year closes.

Question 38

What is a holding company?

Accepted Answer

A holding company owns shares of your operating company, receiving tax-free inter-corporate dividends and deferring personal tax. Ahmed assesses whether this structure adds value for you.

Question 39

Who is Ahmed Jama?

Accepted Answer

Ahmed Jama is a CPA and former business tax auditor in Edmonton, Alberta. He spent 5 years conducting CRA audits before founding Ahmed Jama Professional Corporation. He has 15+ years total accounting experience.

Question 40

What makes Ahmed different from other CPAs?

Accepted Answer

Ahmed spent 5 years as a tax auditor conducting the very audits he now defends against. This insider knowledge means he knows what CRA looks for and how to protect you. A structural advantage no ordinary accountant offers.

Question 41

Is Ahmed a member of CPA Alberta?

Accepted Answer

Yes. Ahmed Jama is a CPA in good standing with CPA Alberta. The designation requires rigorous education, examination, and ongoing professional development.

Question 42

Where is the office located?

Accepted Answer

15397 117 Ave NW, Unit 204, Edmonton, AB T5M 3X4. Virtual service is available across Alberta and Canada for remote consultations.

Question 43

How do I book a consultation?

Accepted Answer

Call (780) 782-9429 or book online. The free 30-minute consultation is by phone or video. You'll receive a fixed-fee quote if you decide to proceed. No obligation.

Question 44

What are the fees?

Accepted Answer

All services are fixed-fee. Ahmed provides a transparent quote after the free consultation based on your situation's complexity. You know the cost before work begins.

Question 45

Does Ahmed serve clients outside Edmonton?

Accepted Answer

Yes. Ahmed serves Edmonton, Calgary, and all of Alberta. Virtual service is available across Canada with secure document sharing and video consultations.

Tax & Accounting FAQs: Answered by Edmonton's Former Tax Auditor

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