March 30, 2022
By: Mina Alexander
Tax filing deadlines are quickly approaching, and it is important to know when you are required to file and pay any tax balance owing. As we will discuss, you may be required to pay taxes owing prior to your filing deadline, if you fail to do so, you may be subject to interest payments on top of your tax debt.
Individuals have a tax filing deadline for their 2021 tax return of May 2, 2022. While the deadline to submit tax returns is usually April 30th of each year, if that day falls on a weekend the Canada Revenue Agency (the “CRA”) extends the deadline to the following business day, meaning you have one more weekend to scramble through your tax filing.
However, your filing deadline is different if your spouse or common-law partner is self-employed, if so, then your deadline to file your taxes is June 15th. Nevertheless, you are still required to pay any taxes owing by April 30th.
Self-employed individuals have until June 15, 2022, to file their income tax returns. However, they are required to pay any taxes owing by April 30th (or May 2nd since April 30th falls on a Saturday) or else CRA will begin assessing interest on any unpaid tax amounts starting the day following the deadline (May 3rd, 2022). The differentiation of filing and payment deadline has always seemed odd to me, since most people would only understand the true amount of taxes owing after calculating the income, expenses and losses for the year. Why the CRA would grant self-employed individuals more time to file their returns yet require payment earlier seems unhelpful. Nevertheless, be sure to pay any tax amounts owing prior to or on the deadline, or you may incur interest fees.
Sole-Proprietors & Partnerships are required to submit returns by May 2nd, unless the business has opted to observe a non-calendar fiscal year, then their deadline would be six months after the end of said fiscal year.
GST/HST Registrant are required to file a GST/HST return based on their reporting period, which may be monthly, quarterly or annually. For annual filers, their returns must be filed, and payments made by June 15th, whereas monthly or quarterly filers have a deadline of one month after the end of their reporting period to file and pay taxes owing.
Late Filing Penalties are applied on any taxes owing starting on the day after your filing deadline and will amount to five percent on the taxes owed plus an additional one percent for each month you are late, up to 12 months.
If you’ve missed your filing deadline and are unable to pay your tax debt at once, contact us for a consultation, we may be able to assist in facilitating a taxpayer relief application, voluntary disclosure application, or a payment plan on your behalf.