CRA & Revenu Québec, Self-Employed, Tax Basics

When Taxes Are Due In Canada

Overview

Individuals must file their income tax returns by April 30th, every year. As long as you file and pay by then, you will not incur interest or penalties.

Self-employed people and their spouses or common-law partners have until June 15 to file their tax returns. However, any balance owed must still be paid by April 30. If you have self-employment income, consider preparing your tax return well before April 30 to calculate if you have a balance owed. This will help you avoid late-payment penalties.

The Canada Revenue Agency sets strict filing deadlines, and expects to receive income tax returns and payments on time. If not, the CRA charges interest, fees, and penalties. If you want to avoid late fees, you need to know when your return is due.

About the Deadline for Individual Tax Returns

Usually, individuals must file their income tax returns by April 30 of the year following the year for which they are filing.

If you are an employee, your employer is required to give you your T4 information slips by the last day of February. However, if you have all of your information early – all the slips, not just T4’s but T3’s, or T5’s, whatever else you are expecting – and you want to file electronically, NETFILE usually opens mid-February, yearly.

Deadline for Self-Employed Tax Returns

If you are self-employed, the CRA gives you a bit longer to submit your income tax return — you do not have to submit it until June 15. However, if you owe tax, the CRA will apply interest to the balance as of April 30.

Due Dates for Installment Payments

If you make installment payments throughout the year so that you can avoid a large bill at tax time, you have four due dates throughout the year. Whether you are self-employed or employed by someone else, you must submit your installment payments by March 15, June 15, Sept. 15, and Dec. 15 of each year.

Due Dates of Final Tax Returns

If you are the legal representative of a deceased person, you are in charge of ensuring his final tax return is submitted to the CRA. If the individual died between Jan. 1 and Oct. 31 of the tax year, his return is due April 30, but if he died between Nov. 1 and Dec. 31, his return is due six months after the date of his death.

Again, if the deceased person or his spouse or common-law partner is self-employed, the CRA extends the due date to June 15, but it still begins assessing interest as of April 30.

Holidays and Weekends

If the due date falls on a weekend or a Sunday, the CRA extends it to be the following business day. Mailed responses must be received or postmarked by the due date, and electronically submitted returns must be transmitted by midnight local time of the date they are due.

Penalties for Filing Late

To discourage late filers, the CRA charges a late filing penalty of five percent of your balance owed plus an additional 1 percent for each month the return is late. This fee is added to the compound daily interest that begins accruing on the balance on its due date.

For example, if you owe $5,000 in income tax and you file four months late, the CRA assesses a late filing penalty of nine percent or $450.

If you don’t have enough money to pay your tax bill, you should still file on time to avoid the late filing penalty. Then, the CRA will only charge you interest as you work on paying your tax owed.

References & Resources

From TurboTax: Tax Filing Deadlines for Individual Filers

From the CRA: Public Holidays