Now that we have entered the new year, we are quickly approaching upcoming tax deadlines. Here’s what you need to remember in order to stay compliant:

February 28: T4, T4A, T5 slips and summaries

In less than one month, your T4, T4A, & T5 forms are due. If you paid employee wages during 2017, you’ll need to remit a T4 to your employees – both current and former. Any contractors who received a commission will be due a T4A, while shareholders who received interest or dividends from you will need a T5. If you don’t already have it, contact the people to whom these forms are due and verify their legal name, mailing address, and SIN. Also, now is the time to review your records to make sure that the pay data is accurate and work to fix any errors.

March 1: Last day for 2017 RRSP contribution

One of the best ways to reduce your tax liability is to make a contribution to your Registered Retirement Savings Plan, or RRSP. Anyone with earned income and a SIN can make a contribution to an RRSP. Your deductible contribution is limited, however, by CRA guidelines. Check your Notice of Assessment from your 2016 filing to determine how much you can contribute and try to max it out if you can. Remember, the more money you put into your RRSP now, the lower your tax bill AND the better your retirement account. Talk about a win-win.

April 30: Personal tax filing deadline and payment deadline for individuals and sole proprietors

Today’s the day! Make sure your personal tax return is filed by April 30 in order to avoid hefty fines (unless you’re getting a refund, in which case you won’t be fined but you are risking the loss of the Canada Child Benefit, if you qualify, by filing late). Fines can be as low as 6% for first time offenders who file within a month, all the way 12% for chronic late-filers who file within a month past the due date.
If you’re self-employed, you still have a month and a half to file your return, but your tax payments are also due today.

June 15: Sole proprietor and partnership return filing deadline

You are required to file a business tax return whether you are reporting income or a loss. Not sure if this is your deadline? If your business is unincorporated, then your return is due now. Depending on your business type, you will need to file a T1, T2125, T5013, or a combination of those forms, in order to report your self-employment earnings to the CRA.

Other important dates:

  • If you are in charge of a trust, you are required to file your T3 within 90 days of the trust’s tax year-end. This can be found by reviewing the trust fund paperwork.
  • If your business is incorporated, you must file your T2 corporate income tax return within 6 months of your fiscal year end. This is the final day of your 12-month period of a year. Many companies use December 31 as their fiscal year end, but there are valid reasons for using a different date, such as seasonality. Check your articles of incorporation to determine your company’s year end and filing date requirement.

Tax season can be difficult, but it doesn’t have to be. If you need help navigating your 2017 tax filing requirements, contact us and we will be happy to guide you through.

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