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FAQs

A big part of what we do is to provide guidance on best practice accounting and tax management issues. Here is a sample of some of the more frequently asked questions we encounter.

If you have a question that is not covered here, please feel free to contact us.

INDIVIDUALS

When is the deadline for filing my personal tax return (T1)?

Canadian income tax and benefit returns are filed on a calendar year basis (ie., 1 January to 31 December) and are due on April 30 of the following year, except for self-employed individuals.  Personal tax returns for self-employed individuals, and their spouse, are due on June 15 of the following year. However if taxes are owing for self-employed individuals, the outstanding amounts are due on April 30. Read more.

If I don’t owe any taxes, do I still have to file a personal tax return (T1)?

If you don’t complete a tax return (T1) you cannot be sure whether you owe CRA or if you are entitled to any benefits, such as the GST/HST credit. CRA recommends all Canadian and non-residents to file a tax return once per year.

What should I do if I owe taxes but I cannot afford to pay them immediately?

CRA recommends you file your tax return (T1) to meet the deadline and pay whatever you can against your debt. If you cannot afford to pay the entire amount, you can contact CRA to discuss a payment plan and/or other possible arrangements under the taxpayer relief program.

Why did I receive an instalment reminder from CRA?

You have to pay income tax instalments for the current year if your net tax owing in either of the two previous tax years exceed $1,800 if you live in Quebec or $3,000 if you live in any other province or territory. Personal tax instalments are paid quarterly and are due quarterly on: March 15, June 15, September 15, and December 15.

BUSINESSES

I want to start my own business. Should I incorporate or become a proprietor?

This is a common question for new entrepreneurs. Unfortunately, there is no one solution that fits all. Whether to incorporate or become a proprietor depends on your business goals and personal situation. Please contact our firm for further discussions and advice.

I am in a new business and need to know how to pay corporate and goods and services taxes?

CRA accepts payment in various methods. Please refer to the CRA website for more information.

When is the deadline for filing my corporate tax return (T2) and paying any taxes owing to CRA?

Corporate tax returns are due six months after the corporate taxation year-end. Any taxes owing are due two months after the corporate taxation year-end. In some circumstances taxes may be due three months after the corporate taxation year-end. Read more.

When do I have to make corporate tax instalments?

Generally, you have to make corporate tax instalments for the current taxation year if the total taxes payable for the previous taxation year exceeds $3,000. Corporate tax instalments are due on the last day of every month. Some corporations may be eligible for quarterly instalments.

What are the tax filing deadlines for my business?

See tax filing deadlines for businesses.

NEED MORE INFORMATION?

For more details, go to Canada Revenue Agency

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