Practice

An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements, including the verification of specific information as determined by the auditor or as established by general practice. Auditors must be a CPA in USA or a Licensed Public Accountant authorized by a Province in Canada. Our firm holds a CPA license from California Board of Accountancy and a Public Accounting License from CPA Ontario.

The audit process encompasses a review of internal controls, testing of selected transactions, and confirmations from third parties. Modern audits are designed to assess risks of a material error or misstatements. Based on the level of risk assessed, the auditor prepares an audit response designed to address those risks. Based on the findings, the auditor issues a report on whether the financial statements are fairly stated and free of material misstatements.

Advantages of an audit:

• An audit satisfies almost all the stakeholders including suppliers, employees, customers, investors, lenders and the world at large.

• Determine more accurate amounts of corporate taxes, sales taxes and ensure timely payments to avoid interest, penalties, and tax audits.

• Ensures compliance with lenders' covenants.

• Prevent and detect misstatements, frauds, and errors.

• Provide a reliable basis to all parties involved in the merger, acquisition, amalgamation, or purchase and sale of businesses.

You can expect to get the following from an audit:

The client gets the highest level of assurance because the modern audit doesn't just focus on numbers or on the finance function. Instead it covers an evaluation and conclusion on the entire business’ history, health, and, indirectly on its prospects in the near future. Generally, the auditor will communicate directly with a company's:

1. Major customers to independently verify the amounts recorded by the company is being receivable from them as well as, occasionally, the volume of business conducted with them.

2. Financial institutions to obtain direct confirmation of bank balances, loans, credit facilities and the related terms and conditions.

3. Major suppliers to verify outstanding payable balances.

4. Lawyers for their opinions on the likely outcomes on ongoing or potential litigation, claims, or other disputes.

Private companies, too, can benefit from an audit:

Normally all public corporations have to have a statutory audit, but some private entities must also have an annual audit done. These might include local bodies, not-for-profit entities and other organizations receiving government grants.

​Additionally, certain financial institutions require audits of private corporations depending upon on the nature and magnitude of both the amounts and the specific risks involved. and/or the bank's assessment of the company's risk. Further, where the owners do not have direct access to detailed information or are not willing to spend the time and resources and efforts involved in checking the financial statements themselves, an audit provides the best solution.

Assisting our clients to achieve improved and more cost-effective bookkeeping, with maximum convenience and flexibility. Often, small businesses do not have a trained accounts officer. Many business owners, their spouses or assistants try to manage the bookkeeping, often finding the task time consuming and unpleasant! This is where the Bookkeeping team can help!

ZHS offer local, hands-on support, training or out-sourcing for small business bookkeeping in language you can understand, and at a pace to suit you. Getting it right simply and quickly also saves real costs for many clients.

How we can help you

• Monthly management reports

• Permanent support staff
  Payroll services and administration

• Focused business plan maintenance

• Budget monitoring

• Monthly or Quarterly taxation

• Tailoring of software solutions and integration cashflow management

For client convenience, a mobile service is offered, attending where accounts are usually managed (e.g. at business premises or a residence) during normal working hours. Services include:

System Set-Up: ZHS tailored and set up your accounting software for you, to suit your business. This includes establishing data files and customizing the chart of accounts.

MYOB and QuickBooks: ZHS can manage books and train clients in the common software packages, and can discuss any special software needs.

Training and Support: ZHS provides one to one training and support for practical bookkeeping. Training is customized to an appropriate level for each client.

Out-sourced Bookkeeping: Our team can do your books for you – simply, quickly and accurately at your premises. This may be a temporary or ongoing arrangement depending on the needs of each client.

Drop-off and Pick-up: A number of clients drop in their paperwork to our team monthly for all bookkeeping to be done. ZHS will reconcile accounts and keep data entry up to date so your financial management is always current.

Supports Year-End: One of the best features of the service is the back-up of ZHS. Our bookkeeping service often streamlines year-end accounting and taxation requirements, with an in-house reference point for any queries.

We provide a wide range of advisory services in the areas of business planning and project feasibility studies which include working from the bottom-up to arrive at conclusions, recommendations, and reports which could be utilized by the key decision makers. We also assist in evaluating different offers received from bidders to public invitations for tenders.

A Strategic Business Plan is not merely a means for seeking credit facilities or equity investments. Despite having all their strategic and tactical ideas clearly in their mind with an emotionally intense attachment to them, managers and business owners might still need an outsider's 'unemotional' and realistic approach to those interpreting those ideas and visions into a pragmatic plan of action in such a way that a lender or other investor will buy into them. Besides, those external professionals have had previous experience of preparing plans and may be in better positioned to do the job.

Normally a business manager or owner will need a Strategic Plan in the following situations:

• Startups

• New product or service launch

• Business expansion

• Purchase or sale of an entity, division, branch, product or service

• Financial or business re-engineering

A Strategic Plan describes the company, its products and services, competition, management, financial position and operating results, both historical as well as future-oriented.

A user of the plan will expect to find the following information:

• Profile of the targeted market and its composition

• A detailed description of the venture

• Substantiation that the targets achievable and the underlying assumptions are both relevant as well as realistic.

• A detailed marketing plan clearly identifying the target market, the demographics, the competitiveness of the pricing of products and services.

• A human resource plan

• Management systems.

• Financial plans that covers all areas of the business and its economic viability.

• Projection or forecasts for the next three to five years with details of the assumptions used.

• Capital expenditure requirements

• Financial requirements giving a detailed breakdown as to the sources and nature of funds i.e. equity investment or borrowings.

Certainly, this is the most crucial aspect of any business and in fact it holds the key to success. This assessment tells the business ‘where the business is heading’. To make an assessment various factors will have to be considered. The future of the business and its goals and objectives and whether the assessment so far made is leading the business to the desired goals should also be considered. We have most experienced and professionally qualified experts who make proper evaluation of the business. In this segment our services include:

• Making an evaluation based on opinions and periodical reviews

• Appraisal of the critiques and business planning.

• Negotiation of complex issues and settling the same

• Analysis of economic status including planning estate

• Considering experts’ opinion

• Legal consultancy including buying and selling agreements

One of our firm's partners is an AICPA Accredited Business Valuator with extensive practical experience.

Lowest Level of Assurance:

In case of compilation, the accountant essentially presents numbers provided by management without expressing his/her own professional opinion. In compilation engagements, an accountant does not make inquiries or nor does he/she carry out an analytical review. The accountant just puts his/her accounting and financial reporting knowledge based on a very limited understanding of the client's business.

Quite frequently the bankers and other lenders find financial statements compiled by an independent accountant, even though without any assurance, to be useful for their purposes.

There are many areas which are development oriented. At the same time, they may also involve tackling in house problems. Tackling in house problems is as important as tackling any other issues. This is because, if the in-house problems are not resolved, it would affect the overall growth of the company and it would lead to inefficiency and affect the entire business. Here also we have specialized services to offer. We have enough experience in settling rows between partners or shareholders. Our Expertise Services include planning the business operation, advice on mergers or acquisition, legal implications of mergers, etc.

Whether you are a start-up or someone whose business is ready to be taken to the next level, you will invariably need to raise funds. The first words you would hear from anyone you approach will be "where's your business plan" or "send me your forecast".

Aside from presenting the numbers in terms of sales, cost of sales, expenses etc., a forecast or business plan is a candid indicator of whether or not you have clearly thought things through; whether your vision is just a vision or you are ready to put things into action. Are your thought coherent.

While nobody would ever know your vision and plans better than you do, it is definitely very important to get a professional involved - someone who has dealt with the lenders before...someone who speaks their 'numbers lingo'.

We provide a wide range of advisory services in the areas of business planning and project feasibility studies which include working from the bottom-up to arrive at conclusions, recommendations, and reports which could be utilized by the key decision makers. We also assist in evaluating different offers received from bidders to public invitations for tenders.

Arbitration and litigation are these days very much a part of doing business and your lawyers have to have a strong, focused, and assertive team of accountants behind them in order for you to win a case. We have experience in this field and have assisted our clients in a variety of litigation environments in Canada, USA and other countries. We played a key role a assisting our client’s law firm in USA (one of the largest) in filing a multi-million dollar lawsuit against an international bank. We are currently assisting a client in litigation support role in Pakistan.

Mergers and acquisitions are part of every business. But this has to be done with care and caution and we have to properly understand the implications of such mergers. By a merger, the company must be able to upgrade itself for the better. As far as possible, mergers with sick companies should be avoided. This is because it may take quite some time for the sick company to revive and this may retard the progress of the company which has acquired such a sick company. It calls for analysis of various aspects and we provide the following services:

Check if there are any hidden costs and assess their effects on mergers

• Analyze internal controls

• Forecast of mergers

• Legal aspects of acquisition

• Evaluate the ongoing business

ZHS Professional Corporation provides full-scale income tax services for non-residents of Canada. No matter wherever you live, you can take advantage of our nonresident income tax services in Canada.

Be it income tax preparation, income tax planning, or GST/HST issues for non-residents of Canada.

Income Tax Return Preparation For Nonresidents Of Canada

Some of the common situations where non-residents of Canada need to file tax returns include:

• If the CRA has requested or demanded nonresident to file a tax return in Canada

• You own real estate in Canada and generate rental income.

• You are selling real estate or other Taxable Canadian Property (TCP) located in Canada

• You carry on a business in Canada

• You perform services in Canada

• You generate employment income from Canada

Withholding Tax Issues For Payments To Nonresidents

Canadian payors are required to withhold taxes from the payments to non-residents (NR) of Canada. Withholding rates vary for different countries depending on the kind of income nonresident is generating from Canada. In some cases, withholding satisfies the tax obligation of NR in full. However, certain cases require the filing of an income tax return in Canada.

Canadian payors are held responsible for not withholding and remitting taxes from payments to NR. They are also required to file the information returns at end of the calendar year. This makes it even more important for Canadian payors to seek proper tax advice.

Rental Income And Real Estate Sale

There is a buzzing estate market offering lucrative returns in Canada. Many non-resident individuals and corporations invest in real estate.

Any rent payment to a non-resident of Canada requires a withholding of 25% on the gross amount. However, the non-resident can elect to file a tax return under section 216 of the Income Tax Act and request the withholding to be done at a reduced rate. Once approved, the payor can withhold taxes at a lower rate. This comes with an important caveat. If the non-resident does not file a tax return, the withholding agent is liable to pay the taxes at the applicable rate on gross amount.

You need to file the election to file the tax return under section 216.

At the time of sale of real estate property, the purchaser is also required to withhold taxes from the gross amount of the sale. Further, a certificate of clearance is required as well.

Do you need help with getting a clearance certificate from CRA? Do you need to file Sec 216 or 217 income tax returns? Get in touch today.

Carrying On Business In Canada

If you are an individual or a corporation carrying on business in Canada, you are subject to requirements under both Excise Tax Act (ETA) and Income Tax Act (ITA). You might be “carrying on business” in Canada even when you are not sure.

The requirements under ETA and ITA become complex depending on the corporate structures, transactions between non-residents and residents, and tax treaties between Canada and other countries.

Voluntary Disclosure Program For Non Residents Of Canada

Sometimes, non-residents are in non-compliance with the tax laws of Canada, either intentionally or based on misguided advice. The Canada Revenue Agency runs a program Voluntary Disclosure Program (VDP) and gives an opportunity to taxpayers to come clean. The VDP offers protection from gross negligence and criminal prosecution. There is a possibility to reduce interest and penalties as well.

Need help with income tax planning, preparation, resolving issues with Canada Revenue Agency, or formal tax advice, or a VDP application?

Get in touch with us today and experience the excellence in service other non-residents clients enjoy access to.

Quebec Income Tax Services

We can prepare and electronically file Quebec Income taxes for you.

Our Quebec tax services include below:

Quebec Individual Income Tax Return – TP1

We prepare and EFILE your Quebec Individual income tax return TP1.

Quebec Business Tax Services

Our business tax services for the businesses with Quebec filing requirements include:

Preparation and filing of Corporation Income Tax Return CO-17. If you are required to file a Corporate Income Tax Return CO-17T, we can prepare and file the same for you.

More Information on when to file Quebec Income Tax Return

Quebec Sales Tax Returns

If you are a Canadian corporation that is required to file QST sales tax return, we can file the same for you.

Quebec Tax Services For Nonresident Corporations

If you are a Non-Resident Corporation who is required to file QST (Quebec Sales Tax) return or corporate income tax return, we can prepare and electronically file the same for you.

Important Disclaimer:

French Language Limitations

Please note that we do not have a French-speaking accountant available at the moment, all communication must take place in English.

A review engagement provides a moderate level of assurance to the user of the financial statements.

In reviewing financial statements for a client, the public accountant bases his/her work primarily on inquiry, discussion and analysis with the overall of objective of ensuring that the information presented is plausible under the circumstances.

A review is not an audit and therefore all pages contained in a set of reviewed financial statements are clearly marked as un-audited.

In most cases related to small to medium size businesses, review engagements are required by regulatory agencies, financial institutions and other lenders.

Review engagements are cost effective compared to an audit.

Succession planning is a very effective tax saving tool for family-owned businesses. It serves a tool to transfer wealth to the next generation with a much lower tax cost. There are many different ways of achieving the objectives of a business owner including the formation of a family trust . Contact us for further details.

Preparation of a tax return most frequently appears to be deceptively simple. However, once a taxpayer embarks on what appears to be a 'piece of cake' can easily turn out to be a very confusing and daunting task.

The cost of involving a professional tax preparer or better yet a designated accountant is, as acknowledged by most clients, is easily outweighed by the benefits of using those services in terms of tax savings as well as avoidance of trouble with CRA or IRS.

Over the years, taxation laws, rules, regulations, and interpretations by CRA or IRS have become so complex that most of time even an apparently simple tax return preparation can turn into an exercise in solving a punishing puzzle.

Tax software can easily turn from 'friend' to 'foe'. The smartest thing, most of your friends will vouch, is to engage a professional accountant and save yourself the trouble of receiving half a dozen reassessments, questions, scrutiny and intimidating phone calls and visits for a tax auditor.

Tax filings include:

• T1 (Canada) or in USA: Form 1040. For both employed as well as self-employed individuals.

• Partnerships and LLC in USA: (Form 1065 and State LLC forms)

• Corporations T2 (Form 1120 and 1120 S - S corps)

• Trusts: T3 in Canada and Form 1041 in USA.

• Tax exempt organizations: T1030 in Canada and Form 1041 in USA.

Disputes relating to tax with federal agencies are common for many industries. There are appropriate agencies to redress the grievance. But this requires proper presentation of the matters relating to tax. Appropriate action should be taken on time so that the disputes do not pile up. We have experts in this field as well. Our support in this area includes:

• CRA audits and appeals

• Analysis of audit report of retail sales tax/GST/HST.

• Tax hearings and appeals

• Civil examinations of evasions including investigations relating to tax

• Appeals regarding dispute

• Compromise of disputes

• Trust Fund Recovery Penalty (TFRP)

• Tax lien periods including levies.

I have yet to meet with someone who loves to receive an audit letter from CRA or IRS. The first letter from IRA normally includes IRS Form 4564, Information Document Request. The first letter from CRA is, most of the times, a standard letter requiring to produce everything you are supposed to have including general ledger, bank statements, minute books, original vouchers, loan agreements, shareholder agreements, and a long list of other items.

The IRS Evidence Gathering Process consists of looking at major expense areas reported on your tax return and seeks the underlying support such as receipts, check copies, bank records and proof of deduction. Audit may start only with one area but can expand to all areas on your tax return, such as reported income and unreported income. The IRS audit (called an "Examination") takes significant time away from your business and family, requiring you to gather mounds of records substantiating each and every item reported on your tax return and develop a comprehensive understanding of tax law.

Obtaining a qualified representative as a CPA or Attorney is always recommended to help you respond to the IRS questions, issues, and requests for documentation. We have represented taxpayers (non-clients and clients) for their individual tax returns and business returns with favourable results over the past 10 years.

The CRA and IRS go out of their way in its mission to determine the accuracy of your tax return. If you don't comply with the Auditors' wishes, the CRA/IRS will recalculate your tax and send you home with a hefty tax bill as your parting gift.

Many taxpayers decide to handle a tax audit themselves, and discover they may have not been very savvy when doing a cost-benefit-analysis; i.e. accountant's fees versus the additional taxes, interest, and penalties.

The Tax Auditors are trained to extract more information from you than you have a legal obligation to provide. CRA and IRS Auditors know that most people are intimated by them and are ignorant of their rights. They don't hesitate to take advantage of your lack of knowledge or breaking nerves.

We try that our clients, except sometimes for the first meeting, the taxpayer are not forced to talk to the auditors once we have been appointed their representative.

A CRA or IRS audit doesn't have to cause havoc to your emotionally or financially. Business should go on as usual.

U.S. Canada Cross Border Tax Consultants: U.S. Individual And Business Taxes For Canadians. IRS Authorized Acceptance Agent For ITIN And EIN Applications In Canada.

U.S. Expat Tax Services In Canada

Tax Returns for U.S. Expats living in Canada are different than those living in the US. The addition of multiple forms for each source of income or asset keeps on adding complexity. It does not end there, skipping the filing of those forms results in steep penalties imposed on U.S. taxpayers. All that makes it even more important to consult a tax professional who specializes in the preparation of Tax Returns for U.S. Expatriates.

We help U.S. citizens, residents or nonresident aliens navigate through the maze of Tax Laws and confusing IRS forms to fulfill compliance requirements.

U.S. Federal Income Tax Return Preparation

You must file a U.S. individual income tax return if you are a US Citizen living outside, a Resident alien in the U.S., or a non-resident making investments (or generating income) in the United States. Depending on the individual tax situation, there may be substantial additional reporting requirements than normal tax returns.

A wide range of US ex-pat tax services provided by us include:

• Preparation of Federal Tax Returns for US Citizens living in Canada

• Tax Preparation for Non-Residents

• Tax Preparation for Resident Aliens

• Tax Preparation for dual-status residents in the US

• Getting Refunds from IRS for withheld taxes

• Claiming Tax Treaty Benefits

• Advice for Back Tax Filings

• FBAR reporting

• Self-Employment Taxes for Foreign sourced Income

• Dealing with IRS Inquiries and Audits

U.S. Tax Services For Businesses

Whether you are a US business operating within the United States only or a Canadian business or individual having U.S. income tax filing requirements, we are here to help with your U.S. business taxes. ​

We prepare tax returns for:

• Corporation income tax return for foreign Corporations (1120F)

• Corporation income tax return for C-Corporations (1120)

• Corporation income tax return for S-Corporations (1120S)

• Partnership income tax return (1065)

• Income tax returns for Limited Liability Companies (LLC)

• Protective tax returns for Canadian Corporations

• Treaty-based positions for E-commerce and online businesses operating from Canada

All of the above tax returns are prepared by a United States CPA and include both federal and state returns.

IRS Certifying Acceptance Agent For ITIN And EIN In Canada

ZHS Professional Corporation is an IRS authorized “Certifying Acceptance Agent” in Canada, for the applications for ITIN & EIN.

ITIN Applications

ITIN (Individual Taxpayer Identification Number) is issued by Internal Revenue Services for those who do not have or are not eligible for, Social Security Number. We prepare your ITIN application W-7 or review the one prepared by you, review all the original or certified documents provided by you, submit your application to IRS, and get you the ITIN.

If you are a resident of Canada with a US reporting requirement, we can help you with both ITIN application and US income tax returns at the same time.

EIN Applications

If you are a Canadian business that needs an Employer Identification Number (EIN) from IRS, we prepare and file your application, and obtain EIN for you.

EIN is required for businesses having U.S. income tax filing requirements. Due to the Canada-U.S. Tax Treaty, Canadian businesses are often exempt from U.S. taxes on effectively connected business income unless there is a permanent establishment in the U.S.

Having exemption from income taxes in the U.S. does not exempt such businesses from filing U.S. income tax returns. We help businesses in both getting EIN and the income tax return filings.

Income Tax Services For US LLC Doing Business In Canada

If you are using a US Limited Liability Company (LLC) to conduct business in Canada, your LLC will be subject to different income tax treatment in Canada. A US LLC is either a fiscally transparent entity disregarded as an entity separate from its owner/member(s) or it might have checked the box and treated as a corporation in the United States. We provide both Canadian and US Income tax services for LLCs engaged in business in Canada.

U.S. Individual Tax Returns With CFCs (GILTI, Sec 962, & 5471)

The final and proposed regulations released in 2020 now allow U.S. individual taxpayers to elect under section 962 to treat their CFC income as received by a domestic corporation. Section 962 election sometimes causes a painful return preparation process for individual taxpayers who are good at D-I-Y tax returns. We prepare the tax returns involving Controlled foreign corporations (CFC) with GILTI inclusions and Sec 962 elections for individuals.

U.S. tax returns involving Sec 962 are complex and expensive ones, its always recommended to plan ahead. The U.S. taxpayers with Canadian corporations are recommended to take advantage of our one-stop solution for both Canadian corporate tax services and U.S. income tax services.