I receive a lot of queries surrounding the key Canadian Tax Filing Dates and Deadlines which impacts Individuals and Businesses, so I gathered that information and while not exhaustive, it highlights key dates and deadlines for you to remember and mark on your calendar for the next couple of months.
Remember being late results in penalties and interest and penalties incurred year over year increase in percentage. For example, a regular non-filer who became a late filer was paying a late filing penalty of 62% by his 5th year of late filing.
2015 Canadian Tax Dates and Deadlines for the 2014 Taxation Year.
On or before April 30th, 2015 (a Thursday) is the Personal Income Tax return deadline.
Self-Employed (you or spouse/common-law partner):
If you or your spouse or common-law partner carried on a business in 2014 (other than a business whose expenditures are primarily in connection with a tax shelter), the deadline to file your 2014 income tax and benefit return is midnight on June 15th, 2015.
*** However, if you have a balance owing for 2014, you still have to pay it on or before April 30, 2015.
If you are the legal representative – executor, administrator, or liquidator – of the estate of an individual who died in 2014, you may have to file a return for 2014 for that individual.
Information relating to those filing requirements can be found on the CRA website; Guide T4011, Preparing Returns for Deceased Persons,
Additional information can be found here: Information Sheet RC4111, What to do following a death.
The due date for the final return will depend on the date of death and whether or not the deceased or his or her spouse or common-law partner carried on a business in 2014.
Of note, if you received income in 2014 for a person who died in 2013 or earlier, do not file an individual return for 2014 for that income on behalf of that person. You likely will have to file a T3 Trust Income Tax and Information Return for the estate.
March 2nd, 2015 is the deadline for contributing to an RRSP and to have that contribution count towards your 2014 tax year.
If you suspect you might owe taxes, making a RRSP contribution should help lessen the burden, and in some cases will turn your liability into a credit.
Employee / Nanny Filing Deadline for providing a T4:
In all instances, you have to file your T4 information return (T4’s plus T4 Summary) on or before the last day of February following the calendar year that the information return applies to.
If the due date falls on a Saturday, a Sunday, or a public holiday, your return is due the next business day, so for 2015, they are due March 2nd, 2015 as February 28th falls on a Saturday.
The CRA considers your return to be filed on time if they receive it or it is postmarked on or before the due date. If you fail to file it on time, the CRA will likely assess a penalty.
If you have more than one payroll program account, you will have to file a separate information return for each account.
If you need to file early due to bankruptcy or if your business stops operating, you are required to file within 30 days from the date your business ends.
If the owner of a business dies, the T4 slips and T4 Summary have to be filed within 90 days from the date of death.
You must file information returns by Internet if you file more than 50 information returns (slips) for a calendar year. More information is available at the CRA website, here: Filing Information Returns Electronically (T4/T5 and other types of returns).
General filing information:
* Please keep in mind that if the deadline falls on a weekend or public holiday, for federal income tax purposes, your return is filed on time if it is received or it is postmarked on the next business day.
As well, you should note the difference in “received” dates the CRA adheres to. The CRA considers something to have been received by a taxpayer once the CRA sends that item out to a known address they have on file. On the other hand, the CRA does not consider your paperwork or payments as being received until the CRA actually has said cheque or return in hand and stamps it with their postmark. Mailing something on February 28th which is due February 28th is likely going to result in a penalty for late filing.
* In cases where an individual dies, the final income tax return must generally be filed on or before the regular filing deadline for the year OR six months after the date of death of the individual – whichever is later.
* There will be no income inclusion for an operating cost benefit if an employee fully reimburses the employer for all operating expenses, including GST/HST and PST, relating to the personal use of the automobile within 45 days after the end of the calendar year.
* An employee who has received a low-interest loan from an employer during any part of the year is deemed to have received a taxable employment benefit that is calculated as interest at the CRA’s prescribed rate for the period during which the loan was outstanding. The amount of the benefit is reduced by any interest actually paid on the loan within 30 days of the end of the calendar year.
* Where a family member has loaned funds to another family member or to a family trust, the income attribution rules may not apply on the related investment income where interest on the loan is charged at a rate at least equal to the prescribed rate that was in effect when the loan was made and where interest on the loan is paid by January 30 of the following year.
* In the case of a general corporation, the due date for the balance owing for a taxation year is generally the last day of the second month following the end of the year. In addition, provided certain conditions are met, the due date for the balance owing for CCPCs is the last day of the third month following the end of the taxation year.
* Corporations are required to pay monthly tax installments during the year if their total taxes payable (which is specifically defined) for the current or preceding taxation year is more than $3,000.
* In cases where the taxation year-end of the corporation is the last day of the month, installment payments are due on or before the last day of each month or each quarter. Where the taxation year-end of the corporation does not fall on the last day of the month, the first installment is due one month or quarter less a day from the first day of the corporation’s taxation year-end. Subsequent installments are due on the same day of each of the following months or quarters.
* CCPCs may pay quarterly installments if the following conditions are met:
- The corporation’s taxable income, and that of any associated corporations, for the current or previous year does not exceed $500,000;
- The corporation claimed the small business deduction in computing its tax payable for the taxation year or for the preceding taxation year;
- The corporation’s taxable capital employed in Canada, and that of any associated corporations, does not exceed $10 million in the year or in the preceding taxation year; and
- Throughout the 12 months ending at the last installment payment date, the corporation made all tax remittances and filings under the Income Tax Act, Employment Insurance Act, Canada Pension Plan or GST/HST section of the Excise Tax Act on time.
* The due date of a GST/HST return is determined by the reporting period. If the reporting period is monthly or quarterly, the GST/HST return must be filed and any amount owing must be remitted no later than one month after the end of the reporting period. If there is an annual reporting period, the GST/HST return must be filed and any amount owing must be remitted no later than three months after the end of the fiscal year. Please note that an individual with business income for income tax purposes, who is also an annual filer with a December 31 fiscal year-end, must file their GST/HST return by June 15 and pay their net GST/HST owing by April 30 to avoid penalties and interest.
* Information returns that include T4, T4A, T4A-NR and T5 must be filed on or before the last day of February in each year and shall be in respect of the preceding calendar year.
* An NR4 Information Return must be filed on or before the last day of March or in the case of an estate or trust, no later than 90 days after the end of the estate’s or trust’s tax year. An NR4 Information Return must be filed in respect of payments such as interest, dividends, royalties or pensions made to non-residents in the preceding calendar year.
* In cases where all members of the partnership are individuals (including trusts), the T5013 is due no later than March 31 of the calendar year following the year in which the partnership’s fiscal period ended. In cases where all members of the partnership are corporations, the T5013 is due no later than five months from the end of the partnership’s fiscal period. In all other cases, the T5013 is due on or before the earlier of (i) the day that is five months after the end of the fiscal period, and (ii) the last day of March in the calendar year immediately following the calendar year in which the fiscal period ended or with which the end of the fiscal period coincides.
Good news if you are ready to get filing, because the 2014 General Income Tax and Benefit packages are available at post offices as of early February, and the first day you can use NETFILE was February 9th, 2015.