Deadlines. Deadlines. Deadlines. They are approaching and while we often get anxious about meeting them, the more we know about deadlines, the less chance we’ll miss them. Here are some of the CRA deadlines coming up.
Personal Tax (T1) Return
Payment: April 30
Filing: April 30
Personal Taxes (T1 Return) with Business or Farm
Payment: April 30
Filing: June 15
If you have a business statement or farm statement, you technically have until June 15 to file your tax return. Balances are still due April 30 though.
Business or Farm GST (Not incorporated)
Payment: April 30
Filing: June 15
RRSP Contributions
Due March 1, 2018. If you didn’t see it in our newsletter this month, here is an interesting article on RRSP’s and TFSA’s: read here
Corporate Income Tax (Federal & Provincial)
Payment: 3 months after the corporate year end
Filing: 6 months after the corporate year end
Corporate GST (Annual filer)
Payment & Filing: 3 months after year end
Corporate GST (Quarterly)
Payment & Filing: 1 month after quarter end
Payroll Remittances
The 15th of the month following the month the paycheque was cut. If you pay yourself from your own corporation, and only do 1 year end bonus per year, a payroll remittance for at least the CPP portion, must be submitted by the 15th day after your corporation’s year end.
T4 Slips
Filing: February 28
Penalty: is minimum $100, but is calculated as $10/day, up to a maximum of $1,000
T5 Slips
Filing: February 28
Penalty: is minimum $100, but is calculated as $10/day, up to a maximum of $1,000
T5018 Slips
Filing: due 6 months after year end
Penalty: is minimum $100, but is calculated as $10/day, up to a maximum of $1,000
Final Returns (Filing and Payment)
April 30: if the death occurred between January 1 and October 31
6 months after date of death: if the death occurred between November 1 and December 31
June 15: if the deceased was carrying on a business
Trust (T3) Returns
Payment: 90 days after year end
Filing: 90 days after year end
This includes Estate (AKA “Testamentary Trusts”) and Family (AKA “Inter Vivos”) Trusts. If it is the final trust return, the filing and payment deadline is 90 days after the trust’s wind-up.
T3 Slips
Payment: 90 days after year end
Filing: 90 days after year end
The Trustee of the trust must file T3 slips to each beneficiary that received income during the year.
Instalments
Your instalment schedule should be shown on the cover page of your tax return, both corporate and personal. It is usually quarterly, but may be monthly for corporations. If you repeatedly don’t make your instalment payments, and you consistently owe that amount of tax, the CRA could charge penalties and interest on these.
WCB Return
Filing: February 28
Employers must report the earnings paid to workers each year and estimate what you expect to pay in the upcoming year. This is used to calculate your WCB-Alberta coverage and premiums.
Corporate Annual Return
Each year, on the anniversary of incorporation, you need to file your Corporate Annual Return at an authorized Alberta Registries. Failure to file for 30 months results in your corporation being dissolved.
When a Deadline Falls on a Weekend/Holiday
When the due date for making a payment falls on a Saturday, a Sunday, or a public holiday, the CRA considers the payment to be made on time if they receive it on the next open business day. If you are sending your payment by mail, the envelope must arrive at Canada Revenue Agency by the deadline.
Other Unexpected Consequences to Late-Filing:
Canada Child Benefit
If you don’t file your taxes on time, you may not receive your payment.
Sale of Principal Residence home since 2016
You now have to declare the sale on your personal tax return. Capital Gains are still exempt from tax, but you could face penalties of $100/month, if you are late filing the tax return for either of these years, or if you did not report the sale when you filed. The max penalty is $8,000.
Penalties
Penalties can be costly at 5% of your balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months. Being a year late would cost you 17% of balance owing.
If you were also late filing in the 3 years prior, the late-filing penalty may be 10% of balance owing, plus 2% per month, up to a max of 20 months. Being a year late would cost you 34% more. Being more than 20 months late would cost you an additional 50%.
These fines get worse if you repeatedly fail to report income, make false statements or omissions.
Interest:
5% per year, compounded daily. Starting on the day following the payment due date.
If your tax balance due is zero or a refund, you will not incur any penalties or interest.
While deadlines can be overwhelming, our team can offer you tips and tricks on how to stay organized and avoid penalties. We have a proactive approach and use the latest technology to keep you on schedule when it comes to everything from payroll and bookkeeping to filing taxes and GST.
Let Us Meet The Deadlines For You
Deadlines approach fast and often when you are running a small business. The penalties and interest can rack up quickly. Our CPAs will ensure you never miss a deadline and never rack up those penalties. We will keep you accountable and up to date.
We have extensive knowledge of the changing tax laws – including ones related to self-employed professionals like yourself. We provide bookkeeping and tax services to small business owners in Okotoks and Calgary, including everything from deductions, write offs, expenses, tax returns, GST filing and more.
Read more about Corporate Tax topics that may be helpful to you and your small business.
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