Income Tax Deadlines for Canadian Individuals and Corporations

June 27, 2014 Published by
Post Categories: Tax AccountingAdvice For You

Filing and Payment deadlines for individuals


  • Generally, the filing deadline for individuals is April 30th of the following year;
  • The filing deadline of an individual who carries on a business or whose cohabiting spouse or common-law partner carries on a business is June 15th of the following year (for example, self-employed and partners);
  • Payment deadline for the balance owing of an individual (including an individual who carries a business) is April 30th of the following year;
  • Be advised that, even if an individual does not have to file his/her tax return until June 15th, he/she will still need to pay any outstanding income tax balances by April 30th to avoid interest.

Filing and payment deadlines for corporations

  • The filing deadline for a corporation is six months after the end of the taxation year;
    • If your fiscal year end falls at the end of the month, then you may also file your tax returns at the end of the month.
    • If your fiscal year end lands in the beginning or middle of the month, be sure to file prior to that exact day six months later.
  • Payment deadline of balance owning of a corporation is two months after the end of the taxation year;
  • A corporation’s payment deadline is extended to three months after the end of the taxation year for Canadian Controlled Private Corporations, who have claimed the Small Business Deduction in the current or preceding year and whose preceding years’ taxable income on an associated basis did not exceed the $500,000 small business limit for that year.

Late Filing Penalties and Interest

  • Every Canadian individual and corporation must file a tax return each and every year.
    • If you fail to file by the prescribed deadline then you will be subject to penalties and interest.
  • Penalties can be substantial:
    • The Canada Revenue Agency (CRA) will penalize you a basic 5% late-filing charge of the unpaid tax;
    • On top of that, you will be penalized an additional 1% of the unpaid tax for each month that you are late (max. 12%).
  • When the CRA charges you penalties for late filing, they will also look at whether or not you have failed to comply with tax filings in the past.
  • If so, you may be penalized more severely.
  • Interest is charged on any overdue balance owing on a return, late or insufficient instalment payments and any overdue GST/HST amount that a company has to remit to the CRA.
  • Interest equal to the basic rate plus 4% will be charged on an overdue amount. The basic rate is based on the rate charged on 90 day Treasury bills, adjusted quarterly, and rounded up to the nearest whole percentage.
  • In the case that circumstances beyond your control caused you to miss your income tax deadline, the CRA may be able to wave the late-filing penalties and interest that has been charged.
  • When your due date falls on a Saturday, a Sunday, or a holiday recognized by the CRA, CRA considers a return to be filed on time if CRA receives it or it is postmarked on the following business day;
  • For a corporation and an individual carrying on business, the penalties and interest charged by CRA are not tax deductible;

The accountants at Hogg, Shain & Scheck have been helping Toronto businesses effectively file their taxes for many years. Our accounting professionals understand the importance of accurately filing your taxes, and what this can mean to your business. Instead of worry about income tax deadlines and complexities, focus on building a better business. Contact our team today and let us handle the stress of tax time, and support you as you create innovation for Toronto, Ontario.

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