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lpdarcy
New Member

Am I obligated to claim all relevant business expenses if it is to my benefit to have a higher net income for the year?

There are some benefits I do not qualify for as my net income was not high enough.  If I remove some business expenses my income will increase and will be above the minimum required.  Am I legally obligated to include all of my business expenses or is that something that is discretionary?
1 Reply

Am I obligated to claim all relevant business expenses if it is to my benefit to have a higher net income for the year?

Though you are not obligated to claim all of your business expenses by the Canada Revenue Agency (CRA), claiming them in future years when they have not been claimed in prior years may result in a review. 

As seen in our TurboTax article: 7 CRA Audit Triggers and How To Avoid Them: The CRA looks for consistency in your tax returns, even when you’re self-employed or running a small business. If, in a given year there’s a sudden and dramatic rise in your income (or your credits and deductions), your return may be flagged for a review. 

 

For more information please see this CRA link: How tax returns are selected for review

 

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