Are you getting ready to file your Personal Tax (T1) Return here in Canada to the Canada Revenue Agency (CRA)?
Are you chomping at the bit to get your refund?
Before you push forward and get that return in, make sure to check that you have received all the tax slips you should be getting?
Then check again.
If you forget a tax slip – T3, T5, T4, T4A, etc – the CRA does not accept the argument that you just “forgot it”, but rather they believe that you have willingly omitted the slip in order to reduce the amount of income that you are reporting, so you end up paying less taxes.
The penalty for missing slips can be quite steep.
Forget to include slips year over year and the penalty increases.
At inTAXicating, we encourage our clients to keep track of slips expected and slips received through a spreadsheet based on the slips received in the previous year, and any transactions in the current year which will result in the generating of a tax slip.
In the inTAXicating Personal Tax Spreadsheet, we go further by identifying which member of the family the slip belongs to, when it was received the previous year and which institution produced the slip.
Remember that slips produced by institutions are also sent to the Canada Revenue Agency (CRA) so they know what you should be filing before you do unless you keep track.
Then take this list, and staple it to a box or file folder which is kept in the house / place of business for all potential tax-related materials for the year. At tax time, it’s an easy checklist to make sure all is in order and that when filing, everything is included.
If, however, you have forgotten to include a slip, the Canada Revenue Agency (CRA) will eventually use their copy of the slip notify and re-assess you if you have not had the time to amend your return.
If you don’t get to the CRA first, the next thing you know, you likely will have a balance owing and along with the penalty for missing the slip, the debt is accruing interest. It can easily escalate from there!
A little organization will reduce the amount of penalties and interest paid to the CRA. As the Tax Manager for Computershare Trust Company of Canada / Computershare Investor Services, I was responsible for the preparation, filing and submission of tax slips to the millions of investors Computershare kept track of, so I understand more than anyone the importance of getting slips out to the holders on time, and accurately, and then to the government on time and without penalty.
So here is a copy of my list of slips, their mailing date from the provider.
RRSP – If you were one of the many who used the March 1st deadline to make your contribution for the previous year, then you would be receiving that slips beginning March 15th. All other RRSP contributions which were made prior to the 60-day extended period saw their tax slips mailed beginning at the turn of the calendar. They are T4RSP slips and RL2’s for residents of Quebec.
T5 / RL3 and NR4’s begin to get mailed around January 15th.
T4RIF / RL2 withdrawals from a RRIF, are mailed the 3rd week of February.
T5/RL3 for investment interest income coming from a mutual fund are mailed the 3rd week of February.
T3 / RL16 reporting dividend income from mutual funds are mailed by the 3rd week of February.
Receipt of contribution from an estate rolling over funds to a spouse produce a T4RSP / T4RIF / RL2 – issued for receipt of contributions from an estate rolling over funds to a spouse – sent out the first week in February
T4A / RL1 are issued for RESP withdrawals and are produced and mailed the first week in February.
NR4’s showing income for non-residents of Canada are mailed the 3rd week in February.
If during the year you received Employment Insurance (EI), Old Age Security (OAS) or Canada Pension Plan (CPP) payments, you can follow this 3-step process from the government website to make sure everything is in order and get your tax slips online directly from Service Canada.
inTAXicating Tax Services for all your tax needs and specializing in providing solutions to your tax problems.