We are officially in crunch time!
You now have exactly two weeks to get your taxes done. The deadline bell strikes at 11:59 p.m. on April 30.
Small business owners have different deadlines, of course. Incorporated owners go by their fiscal year, while sole proprietors have until June 15, but any taxes they owe will be charged interest starting May 1.
Look, we get it. Filing your taxes is a pain in the butt. Plus, it takes up a good chunk of your time, especially if you have business expenses to calculate.
But it has to get done. And it’s best if you meet the deadline.
Why, you ask?
Well, the Canada Revenue Agency can hit you harder than you expect if you don’t file your T-1 return on time.
Penalties for late filing
If you owe the government tax, you face a late-filing penalty of five per cent of your balance owning plus one per cent for every month your tax return is late (up to 12 months).
Interest charges aren’t interesting
The second May 1 strikes, the government charges you compound daily interest on any amount owing for 2012. Oh, they’ll also charge you interest on the aforementioned late-filing penalties.
You’re put on delay
Your net income, Line 236 on your T-1, is used to determine eligibility for such credits as the Canada child tax benefit, old-age security payments and GST/HST credits. The longer you wait to file you return, the longer you wait to see those payments.
And if the government owes you money, wouldn’t you want that in your wallet quicker?
You also might be wondering why you still haven’t received a personalized tax-return form from the CRA. You can stop waiting. The CRA wants Canadians to file electronically.
If you want to file manually, you can still pick up a T1 at Canada Post or a Services Canada office. Or call 1-800-959-8281.
Don’t forget, a tax professional can get your work done quickly and find savings where you might not.
Can you help?
We sure can. Contact one of our tax specialists and we can help you wade through the tax benefits and credits available to Canadians. Our services are even tax deductible. Tax software isn’t.
Fill out our contact form or give A1 Accounting a call at 403-226-8297.