self employed... financial disclosure

[tugofwar]

Anyone know what proper financial disclosure for annual income taxes work with a self employed?
What type of documents need to be given to the other party when trying to determine their "true" income, and are they obliged to have to provide all during income tax exchange yearly?
I am having a hard time grasping the net assessment papers I have been given for the past two years and can't see how any human being can live off this amount, work 6 days all day practically for peanuts!
CS is based on a low imputed income from a few years ago.
What are some of my options to try to re evaluate all their nonsense.

 

[Rioe]

I suspect you would want to ask for the business balance sheet and income statement (accounting programs spit these out) the self-employed person used to determine the amounts they put on their T2125 form. And that form should be attached to their tax form that they give you. Don't just take their Notice of Assessment's word for it.

 

[tugofwar]

lol they would make more flipping burgers part time then what is noted on their notice of assessment! No joke

 

[arabian]

NEVER accept line 150 as income from someone who is self-employed.

You need to extrapolate acceptable business expenses from those that are allowable CRA business expenses. HUGE difference.

 

[tugofwar]

There is an imputed income which I know is alot lower than they are actually making.... but there is alot of "cash" deals Im sure of so not sure what are my chances of actually proving a different amount.... and trying to way out my options if it's worth the money/legal fees to try to provide it.