It’s tax season in Canada, and boy oh boy, it can be a real doozy! Between different deadlines for personal, corporate, and HST taxes, plus various forms and slips to keep track of, it’s no wonder that people find it overwhelming. But don’t worry, we’re here to help break it down for you and make it a little less painful.

First things first: if you’re an individual or business in Canada, you need to make sure you understand the critical deadlines and make sure you meet them. If you don’t, you could be hit with some nasty penalties and interest charges. Ouch. If all of this seems a bit daunting, don’t worry! We’re here to help you make sense of it all. If you have any questions or need assistance with your taxes, don’t hesitate to get in touch with us. We’ll help you navigate the process and make sure you’re all set. Happy tax season!

Table of Contents

1. Key deadlines

2. Personal tax deadline

3. HST/GST filing and payment deadlines

4. Corporate tax deadlines

5. Other dates

So, what are the key deadlines you need to know about? Let’s take a look:

• March 1, 2023: Last day to make an RRSP contribution that can be deducted from your 2022 personal tax return.

• March 31, 2023: Last day to file an HST return (except for individuals with self-employment income, who have a May 1, 2023 deadline).

• May 1, 2023: Last day to file your personal tax return if you don’t have self-employment income (June 15, 2023 if you do have self-employment income).

• June 30, 2023: Last day to file a corporate tax return if your corporation has a December 31 year-end.

Got all that? Great! Now, let’s delve a little deeper into each of these deadlines to make sure you understand exactly what you need to do.

• Filing Deadline:

  • The deadline for filing your personal tax return is May 1, 2023, unless you have self-employment income or are the spouse of someone with self-employment income. In that case, the deadline is June 15, 2023. Keep in mind that if a general deadline like April 30, 2023 falls on a weekend, the deadline moves to the next business day, so it’s May 1, 2023 for individuals without self-employment income.

• Tax Payment Deadlines:

  • The last day to make a tax payment without incurring arrears interest is May 1, 2023, regardless of whether you’re self-employed or not. However, if you were required to make tax installments in 2022 and didn’t, you could still be hit with installment interest and penalties, even if you make all the payments by May 1, 2023. The deadlines for individual tax installments for 2023 are March 15, June 15, September 15, and December 15.

• Potential Penalties for Late Payment or Filing:

  • If you’re late filing or paying your personal taxes, you could face some pretty steep penalties. These include:

  • A late-filing penalty equal to 5% of the unpaid balance, plus an additional 1% for each full month you file after the due date (up to a maximum of 12 months).

  • If you receive a “demand to file” letter, the late-filing penalty jumps to 10% of the unpaid balance, plus an additional 2% for each full month after the due date (up to a maximum of 20 months).

  • Arrears interest on any tax payments made after May 1, 2023.

  • Additional interest on the tax and penalties for as long as they remain unpaid.

  • Possible installment interest and penalties for any late installments.

  • For the T1135 form (which reports foreign assets with a total cost over $100,000), the penalties for late filing are $100 per day, up to a maximum of $2,500.

So, what can you do to reduce the potential penalties you might face? Here are a few tips:

• Make a substantial payment by May 1, 2023: If you’re behind on your taxes, consider making a big payment by the deadline to cover any outstanding amounts you owe. Any additional payments will be refunded when you file your tax return, so don’t worry about overpaying. Just be aware that if you have to file a T1135 form, you may still face penalties for late filing.

• File with the information you have by the deadline, then amend it later: If you’re not sure you’ll be able to gather all the information you need by the deadline, go ahead and file with what you have. You can always amend your return later if you need to.

• Request to waive interest and penalties: If you’re unable to meet your tax obligations due to circumstances beyond your control (such as illness or a natural disaster), you can request to have the interest and penalties waived.

• Look into the Voluntary Disclosure Program (VDP): If you’re running late on your tax return, you may be eligible for the VDP. This program allows you to file your return late without facing penalties as long as you meet certain conditions. Just be aware that you’ll still have to pay any taxes you owe, plus interest.

Meet Jimmy, the self-employed tax pro in Canada! 

Jimmy knows that he has to file his taxes by June 15, 2023, but he’s running a little behind and expects to file by July 26, 2023. Oops!

Unfortunately, Jimmy hasn’t made his tax payment yet either, so he owes the government $2,500. He doesn’t have to file a T1135 form, and he didn’t receive a demand to file.

So, what’s going to happen to Jimmy? Well, if he files by July 26, he’ll be one month and a few days late, which means he’ll be hit with a late-filing penalty of 5% plus an additional 1% for each full month he’s late (up to a maximum of 12 months). That’s a total of 6% of his unpaid balance, which comes out to $150 plus interest on the tax and penalties.

But wait! There’s good news too. If Jimmy pays his $2,500 by May 1, 2023, he won’t be subject to any penalties or interest, even if he files late. So, if Jimmy wants to avoid those extra charges, he knows what he needs to do.

Lesson learned: pay your taxes on time, folks! It’ll save you a lot of headache (and money) in the long run.

It’s time to talk about HST/GST filing and payment deadlines in Canada! Are you ready? Great, let’s dive in. First off, it’s important to note that HST deadlines can vary depending on your filing frequency and your year-end. Here’s a breakdown of the different deadlines for monthly, quarterly, and annual filers:

• Monthly Filers:

  • HST returns and payments are due one month after the reporting period. So, if your reporting period is in February, your HST return is due on March 31, 2023. As a monthly filer, you’ll have a return due every month.

• Quarterly Filers:

  • HST returns and payments are also due one month after the reporting period for quarterly filers. If your reporting period is January 1, 2023, to March 31, 2023, your HST return and payment are due on April 30, 2023.

• Annual Filers:

  • HST returns and payments are due three months after your year-end for annual filers, with one exception. If you’re an individual with self-employment income, your deadline is May 1, 2023. For example, if your year-end is December 31, 2022 and you are not an individual with self-employment income, your HST return and payment are due on March 31, 2023.

It’s also worth noting that if you were required to make tax installments in 2022 for your HST and didn’t, you could still be charged with installment interest and penalties, even if you make all your payments by the above deadlines.

Finally, here are the due dates for HST installments in 2023 (assuming a January 1, 2022, to December 31, 2022 filing year):

• May 1, 2023

• July 31, 2023

• October 31, 2023

• January 31, 2024

Phew, that was a lot of information! But now you’re an HST/GST deadline pro, so go forth and file your taxes with confidence!

Uh oh, you’re running behind on your taxes and you’re worried about facing some serious penalties? Don’t sweat it, we’ve got some tips to help you avoid those pesky charges.

First off, let’s go over what the potential penalties are for late filing or payment:

• Late-filing penalty: If you file your taxes late, you’ll be hit with a penalty of 1% of your unpaid balance, plus an additional 0.25% for each full month you’re late (up to a maximum of 12 months).

• Demand to file penalty: If you receive a “demand to file” letter, you’ll be hit with an additional $250 on top of the above penalty.

• Additional interest: You’ll also be charged additional interest on the tax and penalties for as long as they remain unpaid.

• Tax installment interest and penalties: If you’re required to make tax installments and you’re late, you’ll be hit with installment interest and penalties.

So, what can you do to avoid these penalties? Here are a few tips:

• Make a substantial payment by the deadline: If you’re behind on your taxes, consider making a big payment by the deadline to cover any outstanding amounts you owe.

• File with the information you have by the deadline, then amend it later: If you’re not sure you’ll be able to gather all the information you need by the deadline, go ahead and file with what you have. You can always amend your return later if you need to.

• Request to waive interest and penalties: If you’re unable to meet your tax obligations due to circumstances beyond your control (such as illness or a natural disaster), you can request to have the interest and penalties waived.

• Look into the Voluntary Disclosure Program (VDP): If you’re running late on your tax return, you may be eligible for the VDP. This program allows you to file your return late without facing penalties as long as you meet certain conditions. Just be aware that you’ll still have to pay any taxes you owe, plus interest.

Meet Mohammed, the self-employed HST pro in Canada! 

Mohammed knows that he has to file his HST return by May 1, 2023, but he’s running a little behind and expects to file by August 26, 2023. Oops!

Unfortunately, Mohammed hasn’t made his tax payment yet either, so he owes the government $1,500. He didn’t receive a demand to file either.

So, what’s going to happen to Mohammed? Well, if he files by August 26, he’ll be two months and a few days late, which means he’ll be hit with a late-filing penalty of 1% plus an additional 0.25% for each full month he’s late. That’s a total of 1.5% of his unpaid balance, which comes out to $22.50 plus interest on the tax and penalties.

But hey, at least Mohammed has a chance to avoid those extra charges. If he pays his $1,500 by May 1, 2023, he won’t be subject to any penalties or interest, even if he files late. So, if Jimmy wants to save some cash, he knows what he needs to do.

Lesson learned: pay your taxes on time, folks! It’ll save you some headaches (and money) in the long run.

It’s time to talk about corporate tax deadlines in Canada! Are you ready? Great, let’s dive in. First off, it’s important to note that the filing deadline for corporate taxes is six months after the year-end for the corporation. So, if your corporation has a January 1, 2022, to December 31, 2022 tax year, your filing deadline is June 30, 2023.

As for tax payments, the last day to make a payment without incurring arrears interest is generally two months after the year end. That would be February 28, 2023 for a corporation with a December 31, 2022 year-end. However, if your corporation is claiming the small business deduction, your deadline is three months after the year-end.

It’s also worth noting that if your corporation was required to make tax installments in 2022 for its corporate income taxes but didn’t, or made them late, you could still be charged with installment interest and penalties, even if you make all your payments by the above deadlines.

Finally, here are the due dates for corporate tax installments in 2023 (assuming a December 31, 2022 year-end):

• March 15, 2023

• June 15, 2023

• September 15, 2023

• December 15, 2023

Phew, that was a lot of information! But now you’re a corporate tax deadline pro, so go forth and file your taxes with confidence!

Uh oh, it looks like your corporation might be running behind on its taxes. Don’t worry, we’ve got you covered with a rundown of the potential penalties for late payment or filing.

If your corporation files late, here’s what could happen:

• Late-filing penalty: You’ll be hit with a penalty of 5% of your unpaid tax balance, plus an additional 1% for each full month you’re late (up to a maximum of 12 months).

• Demand to file penalty: If you receive a “demand to file” letter, you’ll be hit with an additional 10% of your unpaid balance, plus an additional 2% for each full month you’re late (up to a maximum of 20 months).

• Additional interest: You’ll also be charged additional interest on the tax and penalties for as long as they remain unpaid.

• Tax installment interest and penalties: If you’re required to make tax installments and you’re late, you’ll be hit with installment interest and penalties.

• T1135 form penalty: If you have to file a T1135 form, which reports foreign assets with a total cost exceeding $100,000, you’ll be hit with a penalty of $100 per day (up to a maximum of $2,500).

Yikes! That’s a lot of potential penalties. But don’t worry, there are ways to avoid them. For example, you could:

• Make a substantial payment by the deadline to cover any taxes you owe.

• File with the information that is available by the deadline and then amend it at a later date.

• Make a request to waive interest and penalties if you were unable to meet your tax obligations due to circumstances beyond your control.

• Look into your eligibility for the Voluntary Disclosure Program (VDP) and file your return through that program if it is late.

So, take a deep breath and don’t panic. If you’re running behind on your taxes, there are steps you can take to minimize the potential penalties. Good luck!

It looks like a corporation is running behind on its taxes! Don’t worry, we’re here to help.

First things first: the filing deadline for this corporation is June 30, 2023, and the payment deadline is February 28, 2023. If the corporation expects to file and pay by September 26, 2023, it’s going to be two full months and a few days late.

That means the corporation could be hit with some serious penalties. For example, it could face a late-filing penalty of 5% of its unpaid tax balance, plus an additional 1% for each full month it’s late (up to a maximum of 12 months). In this case, the corporation would be subject to a total penalty of 7% of its $10,000 tax balance, which comes out to $700.

But wait, there’s more! The corporation could also be hit with additional interest on the tax and penalties for as long as they remain unpaid. And if it was required to make tax installments but didn’t, it could be hit with installment interest and penalties as well.

So, what can the corporation do to minimize the potential penalties? Here are a few options:

• Make a substantial payment by the deadline to cover any taxes it owes.

• File with the information that is available by the deadline and then amend it at a later date.

• Make a request to waive interest and penalties if it was unable to meet its tax obligations due to circumstances beyond its control.

• Look into its eligibility for the Voluntary Disclosure Program (VDP) and file its return through that program if it is late.

If the corporation pays its $10,000 or any amount above $10,000 by June 30, 2023, it won’t be subject to any late-filing penalties. However, it could still be hit with arrears interest on the late payment since the payment was due February 28, 2023.

So, it looks like the corporation has some work to do to avoid potential penalties. But with some careful planning and strategic action, it can minimize the damage and get back on track with its taxes. Good luck!

Time to get organized and make sure you’re up to date with all your tax deadlines!

• Get your T4 Employment Tax Slips and T5 Investment Income Slips ready by February 28, 2023.

• If you’re self-employed or have a partnership, get your T3 Trust Return and T5013 Partnership Return in by March 31, 2023 (unless all partners of a partnership are corporations, then it’s May 31, 2023).

• Don’t forget about your RRSP contribution deadline – make your contribution by February 28, 2023 to be able to deduct it from your 2022 personal tax return.

• If you’re planning on making charitable donations, get your donation slips in order. There’s no official deadline on when a charity needs to provide you with a donation slip, but the CRA recommends issuing them by February 28, 2023.

• Staying on top of these deadlines is crucial for avoiding potential penalties and interest charges. By understanding the critical deadlines and taking steps to ensure they are met, you can reduce your risk of incurring additional costs and stress. Happy tax season!

If you have any questions or need help with your taxes, don’t hesitate to contact us at CoPilot Tax. Our team of experts is here to assist you with all of your tax-related needs. Contact us today to learn more about how we can help you stay on top of your deadlines and ensure your tax affairs are in order.

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