Studies and surveys have indicated that every year a large number of Canadians either end up missing their tax filing deadlines imposed by CRA, or meet them at the eleventh hour. Besides the stress, missing tax filing or payment deadlines could be expensive and, in some cases fiscally risky.
Here are the some of the general timeliness for 2019 that can be circled in your calendars to take care of the tax filings and payments.
Individual, Self-Employed and Deceased Income Tax Returns
Individuals – Most Canadians’ income tax and benefit returns are due on April 30th of the following year. For instance, the deadline for 2019 personal tax returns is April 30, 2020.
Deadline for payments for individual taxpayers: Unless certain specific circumstances exist and you are required to pay taxes by installments, your tax balance is also due by April 30th.
Self-Employed Individuals have until June 15th to file the income taxes. This also applies to their spouses.
- Importantly, if there is a balance owing, it must paid by April 30th of the following year, even for the Self-Employed individuals and their spouses.
If you make instalment payments on your income tax or are required to do so, your payments are due four times throughout the year on the 15th of March, June, September, and December.
Deadline for filing and payment by deceased taxpayers or Terminal Return: For a person that dies between Jan. 1 and Oct. 31st included, their tax filing and payments follow the same April 30th deadline.
- If a person dies after Oct. 31st, then tax filing and payment is due six months from the date of their death.
Deadline for filing and payment for deceased taxpayers who were carrying on a business at the time of death: If the death (of the person or the spouse /common law partner) occurred between January 1 and December 15 inclusive, the due date for the final return is June 15th of the following year.
- If the death occurred between December 16 to December 31 inclusive, the due date for the final return is 6 months after the date of death. However, again, the CRA begins assessing tax on any balances owed on April 30th.
What happens if the deadlines fall on the weekend or the statutory holiday?: CRA considers your return to be filed on time if the CRA receives it by, or it is postmarked, midnight of the next business day. Simply put, if the deadline falls on a holiday or a weekend, the deadline moves to midnight of the following business day.
Corporate Tax Filing and Payment Deadlines
Corporate Tax Returns: Businesses have the option to observe a non-calendar fiscal year i.e. does not fall on Dec 31st. In either case, if they have a calendar or non-calendar fiscal year end, their Corporate Tax returns are due six months after the end of their fiscal year end. For e.g., corporate tax return for a corporation with a fiscal year-end of December 31, 2019 would be due by June 30, 2020.
- You must pay any corporate tax owing within three months of fiscal year-end to avoid interest being calculated.
GST/HST filing deadline: For the monthly and quarterly GST/HST filers, the returns and the payment are due one month after the end of the reporting period.
- For the annual GST/HST filers, the returns and the payment are due three months after the fiscal year end.
Interestingly, the businesses could have a different year end for corporate tax and GST/HST returns. For e.g., it’s possible to have a fiscal year end of December 31st, and GST/HST year end of November 30th. In that case, your annual GST/HST return shall be due by the end of February.
If the filing or payment deadline falls on a holiday or a weekend, the deadline moves to midnight of the following business day.
Payroll Filing and Payment Deadlines
Payroll Remittance due dates – The remittance due dates depend on the remitter type i.e. monthly, quarterly. For businesses on monthly remittance schedule, the payment is due by the 15th of the next month. Quarterly remitters’ payment is due by the 15th of the next month after the end of the preceding calendar quarter. For e.g. the remittance for the quarter of Jan 1 to March 31 is due by the April 15th.
T4 and T4A returns for businesses with a payroll account are due each year by the last day of February following the year .
And finally – why file on time?
The CRA imposes strict deadlines on Canadians for filing returns and payments. Failure to meet these deadlines can result in owing interest, fees, or penalties. As a taxpayer, it’s important to keep appraised of what the CRA expects and when. So, for starters, filing on time makes you avoid these interest and penalties. Some of the provincial benefits are administered through CRA. Federal benefits of Canada Child Benefits and GST/HST credits may be delayed if the returns are delayed or not filed. For Businesses, it could increase risk of audits or reviews in case of delayed filings. In essence, the taxman is not happy when he does not get his payments on time.
If CRA’s tax filing and payment deadlines have you worried, get in touch with our team at Think Accounting. Visit us at www.thinkaccounting.ca, email us at firstname.lastname@example.org or give us a call at 905-565-0095.