For any business, there is one question that needs to be asked, and the advice adhered to - when are my taxes due?
In Canada especially, tax deadlines can be confusing. There are personal tax issues, and there are corporate tax issues. You also need to identify the type of business you are:
• Self-employed person or sole proprietor
Understanding which group you fall into will give you a faster answer to your question.
If you are a corporation, and you are a CCPC, which stands for Canadian Controlled Private Corporation), then you need to adhere to the following tax information:
• Your taxes will be due three months after the tax year ends
• But, filing your taxes is but six months after the tax year ends
Remember, corporations can choose the date their tax year ends, but by the time the taxes due date arrives (three months after the end of the year), it could very well be that your records aren’t up to date and completed yet. This can make knowing how much tax you owe difficult. You have two answers to this - you can either work hard to ensure everything is up to date by that time, or you can simply estimate what you think you’re going to owe, pay the CRA by the deadline date, and then submit an amendment to rectify the numbers once your records are up to date.
If you are either a self-employed person or a sole proprietor:
• Filing of your taxes is due on the 15th of June, for the previous year
• Payment of your taxes is due on the 30th of April
The same situation as above may arise, but the same solutions apply.
A regular employee’s tax filings and owed tax are both due on 30th of April, and the employer generally deals with this side of things.
Miscellaneous Tax Dates to Bear in Mind
There are a few other tax filing and owed dates which don’t really fit into specific situations, but may be pertinent to you:
• Corporations to complete HST Annual Filing by the 31st of March
• Self-employed individuals to complete HST Annual Filing by the 30th of April
• Self-employed or corporate HST Quarterly Filing to be complete by the final day of the month, after the quarter was filed
• Self-employed or corporate HST Monthly Filing to be completed on the last day of the month, following the filing of the month’s figures
• T4 and T5 payroll slips (Payroll Filings) – 28th of February, for the year before
The above information should make knowing when your taxes are due much clearer. Of course, if you have any issues or you’re not sure about any aspect of your business, you should talk to a registered and experienced accountant. Simply guessing is not a good idea, and could lead to an expensive mistake, which costs time and money in penalty payments. Every business is different, and whilst dates should be adhered to at all times, there are anomalies which crop up from time to time.
Click on the link below to book a meeting.
- Written by: Jag Bath