Tax and Accounting Services
BBS Accounting offers its clients excellent business and personal tax accounting services, including insights on new and established tax laws, and perfectly tailored comprehensive strategies for minimizing tax liabilities while maximizing refunds.
Our expert tax consultants are extremely knowledgeable on the intricacies of filing corporate taxes in Canada, and we are always available to assist with late filing and adjustment requests.
We also offer tax audit assistance and we are always available to help our tax accounting clients with any correspondence received from the CRA at no additional charge.
What is Income Tax Accounting?
The objectives of income tax accounting is to discover the amount of taxes payable or refundable for the current year and any deferred tax liabilities and the future tax consequences of today’s financial statements and income tax returns. Income tax accounting is different than other forms of accounting because it incorporates highly speculative variables, such as valuation allowance assessments, as well as certain areas which have very prescriptive rules (e.g., intraperiod allocation, valuation allowance balance sheet classification). It requires the use of estimates and assumptions, which can be challenging for professionals to determine, and can result in the need for difficult judgments to be made at various points in time. In addition, there is generally a “timing difference” in terms of when professionals focus on certain aspects of income tax accounting. For example, although the year-end financial reporting function is a critical aspect in the year-end reporting timeframe, the income tax return for that same year is not generally a priority until several months after year-end. In addition to the “everyday” complexities of income tax accounting, when acquisitions or divestitures occur, additional complexities often materialize in the areas of intraperiod allocation, permanent reinvestment assertions, and valuation allowance assessments. Simply put, no transaction is “complete” without a comprehensive assessment of the income tax accounting guidance.