As the tax season approaches, one of the most important things to keep in mind is the deadline for filing taxes. In Canada, the deadline for filing personal income tax returns is April 30th, unless it falls on a weekend or a holiday, in which case it is extended to the next business day. However, self-employed individuals and their spouses or common-law partners have until June 15th to file their returns, although any balance owing is still due by April 30th.
It is crucial to note that failing to meet the deadline for filing taxes can result in penalties and interest charges. The penalty for filing late is 5% of the balance owing plus 1% of the balance owing for each full month the return is late, up to a maximum of 12 months. Interest is also charged on any balance owing, including any late-filing penalties. Interest is calculated daily at the prescribed rate and compounded annually.
It’s essential to file your taxes on time to avoid these penalties and interest charges. If you can’t pay the full amount owing by the deadline, it’s still crucial to file your return on time to avoid the late-filing penalty. You can arrange a payment plan with the Canada Revenue Agency (CRA) to pay your balance owing over time.
If you’re unable to file your tax return by the deadline due to circumstances beyond your control, such as a natural disaster or a serious illness, you can request an extension. You can do this by contacting the CRA before the deadline, and they will consider your request on a case-by-case basis.
In conclusion, the deadline for filing taxes is April 30th for most individuals, and June 15th for self-employed individuals and their spouses or common-law partners. Failing to meet the deadline can result in penalties and interest charges, so it’s essential to file your taxes on time, even if you can’t pay the full amount owing. If you need an extension, contact the CRA before the deadline, and they will consider your request. Remember, timely filing of taxes is not only important for avoiding penalties and interest charges, but it also helps to ensure that you receive any tax refunds owed to you as quickly as possible.