An experienced advisor in the industry seemed to hit it on the head last week, when he declared May first as the start of the next phase of tax season ó adjustment and audit season! When it comes to taxes, it's not only about getting those returns filed on time, but most importantly, it's about storage and retrieval! The "ff-season"is fraught with the potential for tax audit activity by CRA and the need to adjust returns for omissions, missed slips, and of course, the inevitable errors made during the rush!
What should you do if you missed an important provision or document? Most advisors will tell their clients to come back and see them immediately upon discovery They will also cover an important technique in avoiding expensive gross negligence or tax evasion penalties: voluntary compliance (you tell CRA about errors or omissions before they tell you, on that off chance that you overstated deductions or credits, or understated income.)
The following filing milestones should also be noted to answer these and other questions about tax compliance responsibilities all year long:
Adjusting a return to correct an error or omission: 10 years following the end of the relevant taxation year.
Appeals with the Tax Court:
Collection of taxes owing:
Filing Deadlines: Final Returns of Deceased Taxpayers:
Filing Deadlines: Trust Returns
Filing Deadlines: Corporations: 6 months following the end of the taxation year
Instalment Payments: Corporations: On or before the last day of each month
Objection to a Notice of Assessment or Reassessment:
Record retention, Individuals: Generally, six years from the end of related taxation year.
Record retention, Corporations: Permanent corporate records must be retained for two years following dissolution
Registered investments: Manage registered investment accounts around these milestones:
Contributions, RRSP: During the calendar year or within 60 days of the year end
Deduction, Refund of Unused RRSP Contributions: Form T746, with tax return filed for the year in which amounts were withdrawn.
Penalty for Excess Contributions: For 2007contributions, Form T1-OVP by by March 31, 2008.
Refunds from the CRA:
Refunds, Overdeducted CPP or EI Premiums: File separate from PD24 for each worker with T4 information return within the following time limits:
For more information on tax planning provisions and compliance requirements subscribe to The Knowledge Bureau's online tax reference for taxpayers, financial advisors and their clients: EverGreen Explanatory Notes.