Income Tax Deadlines

For Canadians, April 30 is the official deadline to file your personal income tax return with the Canada Revenue Agency.   Where April 30 falls on a Sunday, your return will be considered filed on time if it is received or postmarked on or before May 1, 2017.  If you file your return past the deadline you will be assessed a late filing penalty.  If you owe income taxes it must be paid on or before this date to avoid getting charged interest.

The deadline, if you or your spouse or common-law partner carried on a business in 2016 (other than a business whose expenditures are primarily in connection with a tax shelter), is June 15.  However, if you have a balance owing for 2016, you have to pay it on or before April 30, 2017 (May 1 where April 30 is a Sunday).

Note: if you are filing a return for a deceased person please refer to the following link – http://www.cra-arc.gc.ca/E/pub/tg/t4011/t4011-16e.pdf

Once you have completed your return, you will either be entitled to a return refund or have an amount owing.

To receive your refund in a timely manner you should file your return on or before the deadline and sign up for direct deposit. If you are not comfortable giving your bank account info to CRA then you can choose to receive your refund by check, however, this may take longer.

If you have an amount owing (of more than $2) and cannot pay it in full by the deadline, you will be charged compound daily interest. Generally, You can make arrangements for monthly payments as long as the debt is paid before the next income tax deadline.   Contrary to popular belief,  the interest you pay CAN NOT be claimed as a deduction on the following year’s income tax return.

Note: for tax payer relief provisions for individuals and businesses refer to the following link - http://www.cra-arc.gc.ca/gncy/cmplntsdspts/txpyrrlf-eng.html

A large income tax debt is one of the first signs of impending financial hardshipand should not be ignored.

Powell Associates Ltd. is a Licensed Insolvency Trustee (LIT) focused on providing debt settlement, proposal and bankruptcy solutions for individuals and businesses.

We offer free consultations to review your personal financial situation and practical debt resolution options. Contact us to discuss your situation over the phone or book an appointment to meet us face-to-face in Saint John, Moncton, Fredericton, Charlottetown, or Dartmouth - it's your choice.