Tax Compliance in Canada
Official CRA Receipt Date - Calendar vs. Fiscal Year-End
ASPE on Government Remittances - Late Filing Penalties - Moving Timelines
Government Compliance Deadlines Updated Monthly
Updated to May, 2013
BOOKKEEPER'S HANDY REFERENCE
This is "The Due Dates" page. You'll find tax compliance information that would be of interest to Canadian small business owners and bookkeepers who work from home ... as well as FIVE due dates tables:
- current month federal compliance deadlines
- current month BC compliance deadlines
- tax season due dates
- tax installments deadlines
- CRA benefit & penalty dates
Click here to see what else you'll find in this chat including answering employee questions such as, "When do T4s come out?" or "What are the deadlines for Canada's 2013 tax season?".
Small Business Compliance References
4 Part Series
Click on an image below to go to the chat.
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Tax Compliance Responsibilities Due Dates For MAY, 2013 & 2012/13 Tax Season |
 Tax Filing Deadlines Income Tax, Canadian Sales Tax, Payroll Tax |
 Tax Rates Interest Rates, GST/HST/PST, BC WCB, Auto Allowance, Mileage, CCA |
 GST/HST Quick Method Current Quick Rates Historical Quick Rates |
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What you will find in this chat ...
This section of the site should help small business owners learn their tax compliance responsibilities.
So fill up your tea cup and let's start yakking about ...
- What is tax compliance and paying your taxes on time
- The official receipt date at CRA
- The difference between calendar year-end versus fiscal year-end
- What to do if you can't pay your taxes owing
- GAAP update on government remittances
- Late filing penalties for information returns
- Tax compliance responsibilities you should KNOW about
- Paying compliance taxes using My Payment
- How to quickly update yourself on changes to tax rules/laws this year
More Compliance
Reference Pages
Canadian Controlled Private Corporations (CCPC)
Subcontracting Payments and T4A slips
Federal and Provincial Minimum Wage Rates and Employment Standards
Understanding Tax Audits in Canada
LET'S CHAT ABOUT ...
Tax Compliance and Canadian Bookkeeping
Owning and operating a business in Canada means you have some legal responsibilities. Canada Revenue Agency (CRA) requires regular reporting of Canadian sales tax, payroll taxes, and income taxes. Each province and territory has their own tax related requirements as well. These regulations are often referred to as government compliance requirements.
Tax compliance returns and payments should be filed on time. Failure to report and remit by due dates leads to costly penalties and interest charges. This site provides the Canadian bookkeeping information you need to know to put more money in your pocket and avoid these charges.
Mediocrity is a choice;
it’s not always made consciously, but it is still a choice.
-- Gary Ryan Blair --
GOOD TO KNOW
Be Tax Compliant This Year
Did you make a mistake on a tax return you filed with CRA ... or get some more slips after you sent in your return?
Find out why you should amend it ... and what form to use.
THE BOOKKEEPER'S REMINDER
Small Business Canada 2013
T1 (T2125) and GST Annual Due Dates
(see GST tip)
Tax Filing - Monday, June 17, 2013
Late filing penalties apply June 18, 2013
Tax Payment - Tuesday, April 30, 2013
Interest begins accruing May 1, 2013
GOOD TO KNOW
What is considered the "official" receipt date at the CRA?
Business compliance returns must be physically received by the CRA (not Canada Post) on or before the due date. Canada Post mailing date is not considered to be the receipt date. (The post marked date is only valid as a receipt date for individuals not businesses.) If the due date falls on a weekend or a public holiday, then you have until the next business day.
If you pay electronically, check with your financial institution to see how long from the date of your payment until the funds reach CRA. The funds have to be received by CRA (not your bank) by the due date.
Most financial institutions process overnight. In most cases you have to make your payment online before midnight on the day before the payment is due.
What is the difference between calendar year-end and fiscal year-end?
It is important to understand the distinction between a fiscal and calendar year-end when doing tax compliance.
Calendar year-end refers to the twelve month period January to December. Most sole proprietors in Canada must have a calendar year-end. Generally, CRA requirements do NOT allow sole proprietors to choose their fiscal yearend. However there is one alternate election available for a different year-end than December 31 to qualifying businesses the first time your business files a tax return.
Fiscal year-end refers to any twelve month consecutive period that has been selected (or deemed by CRA) as your "accounting" year. Normally you would choose this to be the least busiest period of activity. Any change to your fiscal yearend, once selected, must be approved by CRA. If you have more than one corporation, you may want each corporation to have different fiscal year-ends to allow for optimal tax planning.
............................................................good bookkeeping practice
THE BOOKKEEPER'S TIP
...... ......... ..............^
Even if you can't pay the taxes owing, strive for tax compliance by always filing compliance returns by their due dates to avoid pricey penalty charges. Interest charges on the balance owing will still apply.
GAAP UPDATE
Government Remittances ... and ASPE
Have you wondered if the new Accounting Standards for Private Enterprise (ASPE) that came into effect on January 1, 2011 affected how you report government remittances on your financial statements?
The June/July 2010 issue of CA Magazine (www.camagazine.com) has an article titled What's Changed?. The article explains that the disclosure requirements under ASPE have been reduced ... and simplified.
One significant disclosure has been added. There is now a requirement with respect to government remittances other than income taxes to disclose the amount payable at the end of the period.
The reasoning behind this is that lenders are the primary users of small business financial statements. Lenders view the status of government tax compliance remittances as important because they have priority status in a bankruptcy.
BOOKKEEPER'S HANDY REFERENCE
Late Filing Penalties for Information Returns
Effective January 1, 2012
Source: CRA website> Businesses> Payroll> General Information> Consequences> Late filing / Penalty for failure to file an inforamtion return by the due date: Legislated late filing penalty
Generally most information returns are due by the last day of February. The penalty for filing past the due date is the greater of $100 or as determined in the table below for the NR4, T4, T4A, T4E, T5 and T5018:
| Number of Slips | Penalty / Day | Maximum Penalty |
|---|---|---|
| 1-5 | N/A | $100 flat penalty |
| 6-10 | $5 | $500 |
| 11-50 | $10 | $1000 |
| 51 to 500 | $15 | $1500 |
| 501-2,500 | $25 | $2500 |
| 2,501-10,000 | $50 | $5000 |
| Greater than 10,001 | $75 | $7500 |
Effective January 1, 2010
Source: CRA website> Businesses> Payroll> General Information> Consequences> Late filing / Penalty for failure to file an inforamtion return by the due date: Legislated late filing penalty
As stated above, generally most information returns are due by the last day of February. The penalty for filing past the due date is the greater of $100 or as determined in the table below for RRSP, T10, T215, T3, T4A-NR, T4A-RCA, T4PS, T4RIF, T4RSP, T5007, T5008, TFSA:
| Number of Slips | Penalty / Day | Maximum Penalty |
|---|---|---|
| 50 or less | $10 | $1000 |
| 51 to 500 | $15 | $1500 |
| 501-2,500 | $25 | $2500 |
| 2,501-10,000 | $50 | $5000 |
| Greater than 10,001 | $75 | $7500 |
GOOD TO KNOW
Tax Compliance Responsibilities YOU Should Know
Source: CRA & The Knowledge Bureau
| Tax Event | Moving Timeline |
|---|---|
| Correcting a Return for Errors or Omissions |
10 years after the end of the adjusted taxation year |
| Tax Court Appeals |
No later than 90 days from mailing date of Notice of Reassessment or confirmation of assessment No earlier than 90 days following mailing date of Notice of Objection (if CRA has not responded) |
| Collections - Tax Owing |
10 years from date of assessment Debt collection is suspended when a Notice of Objection or an appeal has been made |
| Objection to a Notice of Assessment or Reassessment | In general, 90 days from mailing date of notice ... individuals 1 year from due date of return |
| CRA Income Tax Refunds |
In general, 3 years from end of relevant tax year ... EI 3 years; CPP 4 years; individuals 10 years for Federal, Ontario and Quebec If due to loss carryback, extended to 6 years ... 7 years if the corporation is not a CCPC A refund will be used automatically to offset other debts owing instead of being paid out |
| GST/HST Refunds |
4 years from the end of reporting period due date if you have filed all returns for all your business accounts A refund will be used automatically to offset other debts owing instead of being paid out |
Make sure you discuss your situation with a professional who can give you advice tailored to your specific circumstances.
Tax Compliance Just Got Easier in Canada!
Pay Taxes Online At CRA Website
Canadian bookkeeping just got a little easier. As of October 2, 2009, CRA has introduced My Payment service. You can pay your business (and individual) taxes online instantly from your bank account through a secure link with approved Canadian financial institutions.
The institutions currently able to participate are RBC, TD, BMO and Scotiabank as they have INTERAC Online agreements.
This service allows you to pay GST/HST, payroll deductions, corporate income tax, excise duties and taxes, individual income tax ... and more.
If you pay after hours, or on the weekend or a holiday, the online payment will be credited the following business day. This service will not allow post dated transactions.
It works by signing onto My Payment located on the home page of the CRA website. Once in My Payment, a set of instructions comes up. Just follow the instructions and make your selections as prompted. No banking information is shared with CRA.
Updated to May 2013
Click here for 2012/2013 Tax Season Due Dates.
Federal Tax Compliance DEADLINES and DUE DATES
| Tax Filing Deadline | Week Day | Tax Type | Tax Period | Form to be Filed | Payment Deadline |
|---|---|---|---|---|---|
| April 25 | Thursday | Payroll Semi-Monthly | April 1-15 |
PD7A | April 25 |
| April 30 | Tuesday | GST/HST Monthly | March | GST34-2 E or 3 E | April 30 |
| April 30 | Tuesday | GST/HST Quarterly | Jan-Mar | GST34-2 E or 3 E | April 30 |
| May 10 | Friday | Payroll Semi-Monthly | April 16-30 |
PD7A | May 10 |
| May 15 | Wednesday | Payroll Monthly | April | PD7A | May 15 |
| May 27 | Monday | Payroll Semi-Monthly | May 1-15 |
PD7A | May 27 |
| May 31 | Friday | GST/HST Monthly | April | GST34-2 E or 3 E | May 31 |
| June 17 | Monday | GST/HST Annual yrend IS Dec 31 |
2012 | GST34-2 E | April 30 |
| July 31 | Wednesday | GST/HST Quarterly | Apr-Jun | GST34-2 E or 3 E | July 31 |
| three months after yearend | -- | GST/HST Annual yrend NOT Dec 31 |
-- | GST34-2 E | three months after yearend |
Return to Tax Filing Deadlines by Tax Type
British Columbia Tax Compliance DEADLINES
| Tax Filing Deadline | Week Day | Tax Type | Tax Period | Form to be Filed | Payment Deadline |
|---|---|---|---|---|---|
| April 1, 2013 | Monday | Online Registration For PST |
2013 | eTaxBC | Apr 1 |
| REMINDER April 1, 2013 | Monday | BC Returns to GST and PST |
-- | -- | April 1 |
| May 31, 2013 | Friday | 1st PST Return | April 2013 | eTaxBC | May 31 |
| REMINDER April 1, 2012 |
Sunday | BC HST-PST Transitional Rules Relating To New Home Sales Begins | -- | -- | April 1 |
| REMINDER May 1, 2012 | Tuesday | BC Minimum Wage Increase | -- | -- | May 1 |
| REMINDER September, 2012 |
Monday | Tax Specialist Assistance Letter | PST 2013 | -- | Oct 22 |
| PAST DUE February 28, 2013 |
Thursday | WCB Annual Report | Jan to Dec 2012 | Employer Payroll and Contract Labour Report 1810 | February 28 |
| PAST DUE April 22, 2013 |
Monday | WCB Quarterly Filer | Jan to Mar 2013 | Employer's Remittance Form 1820 | Apr 22 |
You should have received your base rate and classification unit letter from WCB for 2013 by December 2012. If you haven't, contact WCB or go online.
PST Tax Compliance Notes - PST was eliminated in BC on June 30, 2010. HST became effective July 1, 2010. The final due date for supplemental returns (July to December, 2010) was January 23, 2011. A return should have been filed each month following tax collection. Vendors were permitted to only refund PST to their customers up to October 31, 2010.
Ernst & Young has an excellent article on PST wind-up points for Ontario and BC that is a must read. It was located at www.ey.com> Services> Tax> PST wind-up points for Ontario and BC but you may have to do a google search now for their 2010 Issue No. 36 20 October 2010 Tax Alert. I have a copy if you need information on this and can't find it.
Due to the 2011 referendum held in BC, PST will be returning to BC in 2013 ... awesome twice the paperwork, twice the fun as the B.C. tax compliance rules change again! :0(
Return to WCB Tax Filing Deadlines
Tax Compliance Reminders 2012/2013 Tax Season |
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BOOKKEEPER'S HANDY REFERENCE
2012/2013 Canadian Tax Season Due Dates
| Tax Type | Tax Period | Form to be Filed | Filing AND Payment Deadline | Week Day |
|---|---|---|---|---|
| Interest payment on inter-spousal loans | 2012 | bank transaction | Jan. 30, 2013 | Tuesday |
| T4, T4A, T5 Receipts | 2012 | T4,T4A,T5 and TSums | Feb. 28, 2013 | Thursday |
| RRSP Contribution | 2012 | -- | Feb. 28, 2013 | Thursday |
| T3 Receipts | 2012 | T3 and T3Sum | Mar. 31, 2013 | Sunday |
| US Tax Return | 2012 | Form 1040 or Form 1040NR | Apr. 15, 2013 | Friday |
| Individual Tax Return | 2012 | T1 | April 30, 2013 | Tuesday |
| Self-Employed Tax Return (incl spouse) | 2012 | T1 (T2125) | FILE-Jun. 17/13 PAY-Apr 30/13 |
FILE-Fri. PAY-Mon. |
| US citizens - FBAR | 2012 | Form TD F 90-22.1 | Jun. 30, 2013 | Sunday |
| Tax-Free Savings Account (TFSA) Return | 2012 | RC243 | Jul. 2, 2013 | Tuesday |
| Schedule A - Excess TFSA Amounts | 2012 | RC243-SCH-A | Jul. 2, 2013 | Tuesday |
| Non-Resident Contributions to a Tax Free Savings Account | 2012 | RC243-SCH-B | Jul. 2, 2013 | Tuesday |
| Corporate Tax Return | 2012/13 | T2 | Click here for details |
-- |
| Construction Payment Reporting System (CPRS) | 2012/13 | T5018 & T50818 Sum | 6 months after end of reporting period |
-- |
Click here for some tax compliance notes on installments and payment deadlines.
Click here for CRA 2013 indexation adjustment for personal income tax and benefit amounts.
BOOKKEEPER'S HANDY REFERENCE
2012/2013 Canadian Tax Installment Due Dates
| Tax Type | Tax Period | Form to be Filed | Filing AND Payment Deadline | Week Day |
|---|---|---|---|---|
| Annual Installment Farmers, Fishermen | 2012 | mailed in Nov | December 31, 2012 | Monday |
| 1st Tax Installment | 2013 | INNS3 E or T1162A | March 15, 2013 | Friday |
| 2nd Tax Installment | 2013 | INNS3 E or T1162A | June 17, 2013 | Monday |
| 3rd Tax Installment | 2013 | INNS3 E or T1162A | September 16, 2013 | Monday |
| 4th Tax Installment | 2013 | INNS3 E or T1162A | December 16, 2013 | Monday |
Designed for non-accountants. Click on image for more information.
BOOKKEEPER'S HANDY REFERENCE
2012/2013 CRA Tax Date Reminders - Benefits & Interest
| Tax Type | Tax Period | Form to be Filed | Deadline |
|---|---|---|---|
| Self-Assessment RRSP Excess Contributions Interest Penalty | 2012 | T1-OVP | Mon. Apr. 1, 2013 |
| Overdue Taxes Interest Begins Accruing Daily | 2012 | -- | Wed. May 1, 2013 |
| Refund Interest on Late Processed Refunds due from CRA | 2012 | -- | Mon. Jun. 17, 2013 |
| New Benefit Year Begins (CTB, GST Credit, OAS) |
2013 | 2012 T1 | Mon. Jul. 1, 2013 |
| Advance Payment Application WITB |
2013 | RC210 | Sat. Aug. 31, 2013 |
Click on image for more information.
Before you file your tax return, be sure to check out Revenue Canada's web page on "Tax Savings ... working for you!" (under About the CRA).
It provides you with information on some of the tax credits and benefits available to Canadians. If you click on Business or Individuals on the side bar, you will have access to more detailed information.
The Business side bar has been divided into categories to make it easy to find what is relevant to you:
- Construction
- Daycare
- E-commerce
- Farmers
- Film
- Fishers
- International and non-resident
- Self-employed
- Small businesses
The Individuals side bar has been divided into categories (not as nice as previously but still good) to make it easy to find what is relevant to you:
- Employees (previously the working taxpayer)
- Students (previously the student)
- Seniors (previously the senior)
- Persons with disabilities (previously the disabled and their caregivers)
- "The parent" has been moved. You will find it on the home page navigation button called Child and Family Benefits recipients
- Tradesperson (previously the tradesperson)
- Tax professionals
- Other categories have been added that I won't list here.
While still a good review for any Canadian bookkeeper on the latest changes, it's not as concise an overview as in past years.
This brings my chat on Tax Compliance to an end for today. Time to water my plants with the cold tea and refresh my cup. ;0)
Bookkeeping Essentials › Canadian Taxes › Tax Compliance
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