Since the calendar turned over to February, I thought that I would provide a reminder to everyone of some important dates coming up in respect of various tax compliance because if you miss any of these filing deadlines, the repercussions are similar to forgetting your anniversary, it will cost you some money in order to smooth things over.
If you are a sole proprietor or a shareholder in a corporation and you employ people, then February 28th is important to you. This is the deadline for filing your employees T4 slips with CRA and providing your employees with their T4 slip.
February 28th is also important if you have declared dividends during the 2012 calendar year. If you have done so or your tax advisor had recommended that course of action, then you have to file a T5 Summary and slips by this date as well. If you don’t, it will cost you a late filing penalty.
Trust returns are due 90 days after its year end. If you have an inter-vivos trust (a trust created while you were living), they have a December 31st year end and therefore must be filed with CRA by March 31st.
March 31st is also important date if you have a corporation is a Canadian Controlled Private Corporation (the shares are owned by Canadian residents) and if the corporation has claimed the small business deduction. If these requirements are met, your corporate income tax balance is due for payment on March 31st.
By the way, if the corporation does not meet the above criteria, then your balance is due on February 28th.
The personal tax filing deadline and the day before I take a day off. What I have found in working in public practice is the anticipated refund or tax liability dictate when people complete their personal returns.
As a University student, I remember eagerly waiting for my T4 slips in the month of February so I could file my return and get my refund so that it would carry me through until my summer employment.
Individuals expecting a refund are always in early, usually starting around this week if they are fortunate enough to have all their slips. However, CRA is not as eager to process those returns with refunds, as they do not start processing T1 returns until mid February. Your return if filed before is put into a holding pattern and processed beginning in mid-February.
Individuals who are expecting to owe usually visit in late April and get filed by April 30th to avoid a late filing penalty, which can add up (5% of balance for first time late filing, 10% of balance owing for second offense).
If as an individual, you run a sole proprietor business, your personal return does not have to be filed until June 15th, however, any income taxes owning must be paid by April 30th in order to avoid any penalties and interest.
So remember, tax compliance dates are important to remember because it can save you some cash and headaches if you file on time. The cash you save by filing your various returns on time can help you out of trouble when you forget an important date at home.