And just like that, the New Year celebration is past and we’re heading into another tax season! With a number of key CRA filing deadlines happening at the end of February, we figure there’s no better time than now to let you in on key deadlines Canada Revenue Agency (‘CRA’) has for corporations, sole proprietors, and individuals.
February 28th Deadlines
- T4 slips: For companies that have employees, you need to file all T4 slips with the CRA on behalf of your employees by this date. If you don’t file these on time, you may incur a significant penalty fee.
- Dividends: if you take dividends from your corporation, your T5 form must be filed, but, take note! Your bookkeeping for the previous year must be completed to do this.
- RRSPs. This deadline may change from year to year as the deadline is officially 60 days after the end of the calendar year. For example, if February falls on a leap year, then the filing deadline is adjusted accordingly. The same goes should the last day of February fall on the weekend. CRA moves the deadline to the following business day.
- Other forms: These include forms such as T4As, T5018s, and your WCB annual return.
April 30th Deadlines: Personal Tax Returns
For 2017, this day is again April 30th, 2018. Note that this day can be moved around depending on when April 30th falls. If it falls on the weekend, CRA will move to the following business day
June 15th: Business Proprietorship Tax Returns
A nice fun game created by the CRA, if your business is a proprietorship with a December 31st calendar year end, you technically have until June 15th to file your tax return.
HOWEVER! If you have any tax OWING to the CRA, you must submit payment by April 30th – 45 days earlier than your filing deadline.
While you do have grace to file in getting your year-end numbers correct, the CRA still wants their tax dollars at the same time as the rest of Canada. A good rule of thumb is to always get your paperwork completed and in by April 30th to avoid any penalties. The CRA does not penalize for submitting payment early…but they sure do for filing late!
Understanding Your Numbers
Organizing your numbers really should be done on a monthly basis. Business owners who typically know their numbers can take actions for filing before the end of December or in early January. This proactive planning typically creates opportunities for business owners because they have the potential to minimize their tax liability by:
- Knowing what tax they have to pay in advance and can budget for it,
- Buying some RRSP to help minimize tax, or
- Invest in company assets – such as new computers or office furniture, before year end.
While these are just a few examples of why you should understand your numbers beyond key filing deadlines, it’s pretty clear that knowing where your numbers sit allows you to better plan for the year ahead.
If you haven’t already, start getting paperwork together and business bookkeeping completed. This will help you know where you stand for any potential personal tax liability.
In the meantime, if you need support with your tax filing or have questions about developing a proactive numbers strategy, contact us today – we love asking questions and supporting people in making their numbers work for them!