FAQs

1.     Filing a PERSONAL Income Tax Return (T1)

 

Any individual who has earned income in Canada and/or who is considered resident for tax purposes in Canada must file an annual tax return according to the following dates:

 

•             April 30 for an employee

•             June 15 for an entrepreneur, consultant or freelancer

•             June 15, if an employee is filing married or common law with a husband who is entrepreneur.

 

Note that in any of the cases above, Taxes due are to be paid by April 30 regardless of the filing deadline.

 

2.     Filing an GST/HST OR Other SALES Tax Return

 

In addition to Filing the Income Tax Return, any entrepreneur, consultant or freelancer with sales over $30,000 in the year or who has registered for HST must collect and file an HST return no later than 3 months after year-end by March 31.

 

3.     FILING A CORPORATE TAX RETURN (T2)

 

All companies must file an annual income tax return (T2) 6 months after their year-end. Note that although the filing is due 6 months after year-end, any amount of taxes is due 3 months after year-end.

 

4.     PAYROLL FILING (PD7A, T4, T4A)

 

All companies must make payroll remittances on a monthly basis, no later than the 15^th of the month for the previous month-end. An annual payroll summary (T4) is filed at year-end by Feb 28. This date is also the deadline for filing the contractors ‘payment summary (T4A) and the dividend summary (T5).

 

5.     NON-RESIDENT REMITTANCE RETURN (NR4)

 

A Canadian non-resident return must be filed at year-end no later than Mar 31 for all income received by a non-resident from Canadian source.

 

6.     Interest and penalties on late taxes

 

You will be charged interest on any taxes that you owe if you pay late. You will also be charged a  late-filing  penalty if you have a balance owing and file your tax return late.

 

•             The interest rate charged on overdue taxes, Canada Pension Plan contributions, and employment insurance premiums will    be 8%.

•              The interest rate to be paid on corporate taxpayer overpayments will be 4%.

•              The interest rate to be paid on non-corporate taxpayer overpayments will be 6%.

•             The interest rate used to calculate taxable benefits for employees and shareholders from interest‑free and low-interest            loans will be 4%.

 

If you file your tax return after the  due date  and have a balance owing, you will be charged a late-filing penalty. Filing late may also cause delays to your benefit and credit payments. If you cannot pay your balance owing, you should still file on time to avoid being charged the late-filing penalty.

 

•            The late-filing penalty is 5% of your 2022 balance owing, plus an additional 1% for each full month that you file after the due date, to a maximum of 12 months.  

• If the CRA charged a late-filing penalty for 2019, 2020 or 2021 and requested a formal demand for a return, your late-filing penalty for 2022 will be 10% of your balance owing. You will be charged an additional 2% for each full month that you file after the due date, to a maximum of 20 months.

 

7.     PAYROLL penalties and InterestS

 

Payroll penalties are assessed for errors in calculation, deductions, paying (remitting) or filling. If you do not pay an amount that is due, the CRA may apply interest from the day your payment was due

 

•           Penalty for failure to deduct – CRA will assess a penalty of 10% of the amount of Canada Pension Plan (CPP), employment insurance (EI), and income tax you did not deduct. If you are assessed this penalty more than once in a calendar year, CRA will apply a 20% penalty to the second or later failures if they were made knowingly or under circumstances of gross negligence.  

• Late or non-payment (remittance) – CRA will assess a penalty when you deduct amounts over $500, but do not send them to CRA or send them late.

 

The penalty is:

o   3% if the amount is one to three days late

o   5% if it is four or five days late

o   7% if it is six or seven days late

o   10% if it is more than seven days late, or if no amount is remitted

o   20% if this is the second or subsequent time you are assessed this penalty in a calendar year, if the failures were made knowingly or under circumstances of gross negligence

•        Individuals must file personal income tax returns by April 30 if they are employees or by June 15 if they are sole proprietors,  entrepreneurs or free lancers.   

• 
  
• All sole proprietors, entrepreneurs or free lancers who registered for GST/HST or who has a total income over $30,000 must file an annual GST HST return.
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• Business must file either one or all of the following returns:

o   Corporate income tax return

o   GST/HST return

o   Payroll and other remittance return

​ ​   o   ​ circumstances of gross negligence.

Once the first tax return has been filed with CRA, we advise our client to register for an online CRA account. The process takes a couple weeks but allows later one the access to all information including correspondences directly from the client account on the CRA website. Refer to link below:

https://www.canada.ca/en/revenue-agency/services/e-services/cra-login-services/cra-user-password-help-faqs/registration-process-access-cra-login-services.html

We are a professional Accounting, Tax, Advisory and Audit firm. Although we work on a first come first serve basis, we also tend to organize our work to meet CRA deadlines and to minimize costs to our tax clients. Please let us know in advance if you need special accommodation such as expediting a tax return, an advisory notice or any other such services that may come with an extra cost.

SCG or ESCPA shall bill the Client on a regular basis for services rendered which bills will be due and payable upon receipt of the client copy of the return.

  Payment can be made by

-       cheque, 

-       virement Interac à l'adresse yonin@senouvoconsulting.ca

-       virement bancaire à