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Last updated: April 12 2011
Tax Filing Deadline Looms on Federal Election Day
This year's tax filing deadline compels most ó but not all ó of Canada's many tax filers to arrange their affairs and reconcile last year's taxes by midnight on May 2, 2011. However, there are many procrastinators, and and many personal tax returns are late filed. This year May 2nd may be busier than usual as we get out to vote, so plan to file well in advance of the deadline!
FIling a tax return, even when you have no income, allows you to receive federal benefits such as the GST/HST credit and the Child Tax Benefit, along with provincial payments from programs administered by CRA. Filing on time means that you will not have to pay late-filing penalties, even if your tax return is reassessed and you are found to owe money.
Failure to file on time may cause you to delay or miss important planning opportunities. For example, tax form T1032 Joint Election to Split Pension Income must be filed by your tax filing due date (which for most people is April 30). Adjustments to the the T1032 is only allowed for the prior 3 years, so this is the last chance to request or change this election for 2007! This is a very lucrative income splitting opportunity for those receiving qualifying pension income and it would be a shame to miss or delay the extra tax refunds due to tardy tax filing habit. Those advisors in the tax and financial services industry should be sure to call all clients who have not yet filed a return by April 30 to maximize availability of this type of provision and of course avoid late filing penalties.
June 15th is also an important date as proprietorship tax returns are due and the 2nd quarterly instalment payments are also required. Even with this deadline you should have a good idea of what you owe for 2010 by May 2nd, so pay up by then as the interest clock will start ticking on May 3rd!
CRA should continue to be on the radar screen even after this year's tax filing deadlines have passed. Please be sure to diarize milestones that maximize your rights under the Income Tax Act:
KNOWLEDGE BUREAU CHECKLIST: INCOME TAX DEADLINE MAXIMIZER
WITHIN THE TAX FILING YEAR
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2011 |
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April 15th May 2 |
U.S. Tax Filing Due Date Tax Filing Deadline for 2011: Personal Tax Returns |
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May 1 |
Interest accrues daily on overdue taxes owing |
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June 15 |
CRA owes interest to tax filers on late processed refunds (in fact, the agency has an obligation to process refunds within 30 days of receipt of the return after April 30). |
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Tax Filing Deadline: Proprietorship Returns - T2125 Quarterly Instalment Due Date Closer Connection Exception Statement for Aliens (IRS Form 8840) |
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June 30 |
Tax-Free Savings Account Returns due |
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July 1 |
New Benefit Year: Child Tax Benefit, GST Credit, Old Age Security (file 2009 tax return to determine benefit levels) |
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August 31 |
Working Income Tax Benefit Advance Payment Application for 2010 |
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September 15 |
Quarterly Instalment Payment Due |
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December 15 |
Quarterly Instalment Payment Due |
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December 31 |
Annual Instalment Due for Farmers, Fishers |
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2012 |
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January 30 |
Requirement to pay interest on inter-spousal loans |
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February 29 |
T4, T5 Slip Completion and Distribution RRSP deadline! |
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March 15 |
Quarterly Tax Instalment due |
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March 31 |
T3 Slip Completion and Distribution Pension Adjustment Reversal Deadline Interest Penalty Due on RRSP Excess Contributions (T1-OVP Form) |
