Ashani Lakhotia CPA ensures that all the necessary steps are taken to avoid coming under the PSB risk assessment, and helps you navigate through it with the right strategies.
Rational | Prudent | Enterprising
Ashani Lakhotia CPA ensures that all the necessary steps are taken to avoid coming under the PSB risk assessment, and helps you navigate through it with the right strategies.
Rational | Prudent | Enterprising
Choose us and we take care of all subtleties for PSB Risk Assessment!
The CRA might classify many small businesses or independent service providers into a Personal Services Business which could impose many tax implications. This could stop such businesses from taking many tax benefits. If your business is classified under the PSB by CRA, you are subject to pay heavy tax rates. This has specifically come into force for many small IT Consulting companies in the recent years.
All in all, you will be paying standard corporate tax instead of the small business tax which is much lower. You also cannot get tax benefits like income splitting. Once classified in this category, the reassessment itself could cost in thousands of dollars.
The very thought of it is daunting in itself and this could eat up most of your yearly earnings. Hence it is advisable to take all the preventable measures to avoid this from happening in the first place.
We at Ashani Lakhotia CPA care about the success and growth of your business and stand to guard your company from PSB classification and garner considerable savings on your taxes .
We advise you to take note of the below pointers to avoid being classified in the PSB category:
- Make sure to adapt and implement asset protection strategies.
- Have a diversified client base for consistent business growth
- Make sure to establish a professional image of your company. It could be with a website, a proper address, phone number and an online presence.
- Ensure that there is a clear line of differentiation between business relationship and an employee-employee relationship through a written contract.
- An independent business knows how to do their work and it is completely under its control on how to get the work done. Make sure that your business meets the set criteria because PSB receives a specific set of instructions from their clients on how to conduct its business.
The tax experts at Ashani Lakhotia CPA are experienced at helping companies avoid the PSB classification and are with you all the way out. Our service could save you a considerable amount of money, allowing you to maintain your current tax classification.
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