Beat the Clock: The Ultimate Guide to Navigating the Tax Filing Deadline

As a leading provider of tax services, Unison Globus understands the importance of keeping up-to-date with tax deadlines 2023 and penalties for late tax filing. The following is a comprehensive guide on Canada’s 2023 tax filing deadlines and penalties.

Tax Filing Deadline And Payment Deadlines

As tax season approaches, it’s essential for CPA firms to stay up to date on important deadlines for filing tax returns and making payments. While taxes may not be the only exciting topic, understanding these key dates is crucial for ensuring your clients avoid penalties and maximize their deductions.

Personal Income Tax

For individual taxpayers, the deadline for filing taxes in Canada due 2022 tax return is May 1, 2023. The Canada Revenue Agency (CRA) opened its NETFILE service on February 20, 2023, to receive electronic submissions. If you want to file your clients return by mail, it must be received or postmarked by the deadline. If your client owe money and file late, the CRA will charge them a penalty of 5% plus an additional 1% for each month late, up to 12 months.

Tax Filing Deadline Dates for Taxpayers Filing with CRA (Canada Revenue Agency)

T1 – Individual income tax return last date for 2022	May 01, 2023
T1 – Individual income tax return last date for 2022 – For self-employed individuals and/or their spouses’	June 15, 2023
Individuals – Income tax payment, including self-employed individuals	May 01, 2023
Section 216 income tax returns (non-residents with Canadian rental income) NR6 approved – filing deadline	June 30, 2023
Section 216 income tax returns – for CCA recapture on disposed of properties	May 01, 2023
Section 216 income tax returns (non-residents with Canadian rental income) – tax payment deadline	May 01, 2023
Section 216.1 income tax returns (non-resident Actors) – filing deadline	May 01, 2023
Section 216.1 income tax returns (non-resident Actors) – filing deadline – Self-employed	June 30, 2023
Section 217 Income tax returns – filing deadline	June 30, 2023
Section 217 Income tax returns – balance owing payment	May 01, 2023
UHT-2900 – Underused Housing Tax Return for affected owners (Including exemptions) – filing and tax payment	May 01, 2023
Information slips filing deadline – Self-employed individuals	February 28, 2023
RRSP Contribution – first 60 days of 2023 for the tax year 2022	March 01, 2023
For installments, please consult the information shared at the time of tax preparation	Variable

What happens when are 2023 taxes due Canada and you don’t meet a deadline?

As tax season is in full swing, it’s important to remind your clients about the risks of failing to file their taxes due on time. Failing to meet the filing deadline can result in the loss of various benefits, including the GST/HST credit, Canada Child Benefit (CCB), and Old Age Security (OAS) benefits.

In addition to losing benefits, some penalties come with late filing. The late-filing penalty is determined by how late you file your taxes due, with an initial penalty of 5% of your tax liability for 2021. Furthermore, an additional 1% per month after the filing deadline will be assessed for a period of up to 12 months.

If you have filed your taxes due late in any of the previous three tax years, you may face additional penalties, which will result in a formal demand for a return. This penalty will be 10% of the amount owed plus 2% per month for up to 20 months.

We understand that circumstances beyond your client’s control sometimes prevent them from meeting their tax obligations. If that is the case, they can request that their penalties be waived or cancelled. It’s important to note that the CRA can only waive penalties if the offence occurred within the last ten years.

We urge you to remind your clients of the importance of meeting their tax obligations and filing on time to avoid unnecessary penalties and the loss of benefits.

Self-Employed Tax Returns

As tax season approaches, it’s essential to be aware of the deadlines and requirements for self-employed individuals. While the deadline for filing income tax returns is June 15th, 2023, it’s crucial to note that any taxes owed are still due by April 30th, 2023. Failure to meet payroll obligations can result in penalties and interest, starting at 3% and increasing up to 20%.

To avoid penalties, self-employed individuals should make quarterly tax instalments and CPP contributions by the deadlines of March 15th, June 15th, September 15th, and December 15th. If your business’s fiscal year does not correspond to the calendar year, you have six months after the fiscal year ends to file returns.

Remember to file T4 and T4A slips by February 28th and partnership information by March 31st if required. By April 30th, previous tax balances must be paid, and taxes in the prior year must be filed. Self-employed individuals and their common-law partners or spouses have until June 15th to file their taxes.

For farmers and fishermen, be sure to calculate and pay the current-year instalment payment by December 31st.

Staying on top of these deadlines and requirements is essential for avoiding penalties and ensuring compliance with the Canada Revenue Agency (CRA). As a CPA firm, it’s crucial to inform your clients of these dates and requirements to avoid any potential issues.

Penalties for late filing

As a CPA firm, it is essential to be aware of the penalties associated with the late filing of taxes. If taxpayers fail to file their taxes by the deadline, they will be assessed a late-filing penalty. For personal income tax, the penalty is 5% of the outstanding taxes, increasing by 1% per month after the deadline for up to 12 months.

As a trusted advisor, providing accurate and timely guidance is essential to help your clients avoid costly consequences. It is crucial to keep this in mind when advising your clients to ensure they file their taxes on time to avoid these penalties. By staying informed and up-to-date on tax regulations, you can provide the best possible service to your clients.

If you have any questions or concerns about tax filing penalties, don’t hesitate to reach out to our team for guidance and support. We’re here to help you and your clients navigate the complex world of taxation with confidence and ease.

International Information Returns

T1135  – Foreign assets verification statement	Due with Tax Return
T1134 – Controlled and non-controlled foreign affiliates	Within 10 months of the tax year-end
RC4649 – Country-by-country report	12 months after tax year-end
T106 – Transfer pricing – Individuals	Individual T1 deadline
T106 – Transfer pricing – Corporations	6 months after the tax year-end

 

Business Tax Deadline 2023

For most business owners, returns are due by June 15, 2023 if the business fiscal year matches the calendar year. If the business observes a non-calendar fiscal year, returns are due six months after the end of the fiscal year.

Information Returns T4, T4A, T5, T4A-NR	February 28, 2023
Information Returns: NR4	March 31, 2023
Information Returns: T5018 (construction contract payments) – filing due date from reporting period	6 months
Corporate income tax return last date – CCPC – filing from the fiscal year-end date	6 months
Corporate income tax return last date – CCPC – payment due from the fiscal year-end date	3 months
All other corporations – Corporate income tax return last date due	3 months
All other corporations – Corporate income tax payment due	2 months
UHT-2900 – filing and payment due	May 01, 2023
GST/HST Returns, payroll source deductions, and other withheld amounts follow the corporation-specific schedule	Variable
Instalments both income tax and GST/HST, follow the instructions of the tax preparer or CRA-issued schedule	Variable

Penalties for late filing

For CPA firms, it is essential to understand the penalties that corporations can face for failing to file their taxes on time. The penalty for not filing tax deadline 2023 on time is 5% of the unpaid taxes, followed by an additional 1% for each complete month after the filing deadline for the next 12 months. The penalty will increase if the CRA has already issued a demand to file the tax return. Additionally, the CRA will investigate whether the corporation still needs to file for at least one of the previous three tax years.

If taxes are not paid when the tax return is due, the penalty will increase to 10%, and you will be charged an additional 2% per month for the next 20 months. To avoid these penalties, corporations must ensure that their tax returns are filed on time and that taxes are paid promptly. As a CPA firm, it is your responsibility to ensure that your tax-paying clients are aware of the penalties they may face and assist them in taking appropriate actions to avoid them.

Penalties for large corporations

We want to remind you of the various tax filing deadlines set by the CRA, including the penalties for late filings. Large corporations, which have a taxable capital employed in Canada exceeding $10 million, must file their tax returns on time. Failure to do so will result in a penalty of 0.25% of the tax payable plus 0.0005% of the taxable capital employed in Canada. This penalty will be imposed for 40 months after the due date.

GST/HST Due Dates

For GST/HST filings, the deadline for submitting your return varies based on your reporting period. To find out when to file, please refer to the top of your customized GST/HST return form or check the CRA’s website.

Final Tax Returns

If you are the legal representative of a deceased person, it is your responsibility to ensure that their final tax return is submitted to the CRA. The deadline for filing depends on the date of death. If the person died between January 1st and October 31st, the return is due on April 30th, and if they died between November 1st and December 31st, the return is due six months after the date of death. However, the due date is extended to June 15th if the deceased was self-employed. We advise you to file on time to avoid penalties and interests that will be assessed starting on April 30th.

 

Instalment Payments

For businesses and individuals who make instalments, it is essential to note that these payments are due on March 15th, June 15th, September 15th, and December 15th of each year. To ensure compliance and avoid penalties, meeting these deadlines and making the necessary payments on time is crucial. As a CPA firm, we understand the importance of staying on top of these obligations. We are here to help our clients navigate the intricacies of instalment payments and other tax-related matters.

Takeaway! – Tax Filing Deadline

At Unison Globus, we are here to help your clientele navigate the complexities of tax filing and compliance. Our team of experienced tax professionals will work with you to ensure that your tax returns are filed on time and in compliance with the CRA’s regulations. To learn more about our taxation and accounting services and how we can assist you, please get in touch. Here, you can request a free trial of our services and get started on your journey to hassle-free tax filing for your clients.