As business owners face more reporting complexity, here are some changes to be aware of #CanadaFinance

Filing taxes is complicated enough for the average Canadian. For business owners, it’s getting even more complex. “One theme we’re seeing in changes to business taxation is towards more reporting complexity, which makes the compliance more costly for business owners,” Luigi De Rose, national private business tax leader at PwC Canada, said in an interview with Yahoo Finance Canada.

“We’re seeing that with a lot of changes happening in our tax system.”

Navigating the changes, as well as hundreds of deductions and credits that business owners may be able to take advantage of, is critical for business owners.

“There are more than 400 credits and deductions available. It’s hard to know them if you’re not working in taxes on a daily basis,” H&R Block tax expert Yannick Lemay said in an interview.

“And these don’t include the expenses you can claim as a business owner. There are many expenses specific to your business that will reduce your taxable income on your tax return.”

The most important thing for business owners – which also applies to individuals – is to start early, says Lemay. “Do not wait until the last minute,” he said.

“There’s a lot of information you will need for your taxes, especially as a business owner, so you want to get on it early … it will definitely make things easier when it comes to filing your taxes.”

While the deadline for most individual taxpayers is on April 30, self-employed tax returns are due on June 15. However, taxes owed by those who are self-employed must still be paid by April 30. For corporations, taxes must be filed within six months of the end of their tax year, which corresponds to its fiscal period.

One change that many business owners are likely grateful not to have to worry about this year is the increase to the capital gains inclusion rate. The Liberal government proposed hiking the tax rate for capital gains for corporations, trusts and individuals from one-half to two-thirds. For individuals, the tax would have applied on gains of more than $250,000. Although the capital gains legislation never passed, the Canada Revenue Agency (CRA) had planned to enforce the change until it reversed course in January, delaying the move until next year.Mark Carney’s victory in the Liberal leadership race has put the final nail in the coffin for Ottawa’s controversial plan to hike the inclusion rate on capital gains.

The proposed change has nonetheless caused confusion among business owners, says Lemay, as many still received tax slips that mentioned June 25, the date when the change was supposed to go into effect. And while the change to the inclusion rate is no longer happening, the proposed increase to the Lifetime Capital Gains Exemption limit is still slated to take place – from $1 million to $1.25 million.