CRA’s annual due dates for tax returns, penalties, and interest

Filling deadlines:

Personal Returns (T1)

1. For individuals (T1 Return): April 30^th
2. If taxpayer or spouse (or common-law partner) carried on a business (self-employed): June 15^th

Tax filing and payment deadlines for deceased persons

• If the death occurred between January 1^st and October 31^st inclusive, the due date for the final return is April 30^th of the following year.
• If the death occurred between November 1^st and December 31^st inclusive, the due date for the final return is 6 months after the date of death.

If the deceased or the deceased’s spouse or common-law partner was carrying on a business 

• If the death occurred between January 1st and December 15^th inclusive, the due date for the final return is June 15^th of the following year.
• If the death occurred between December 16^th to December 31^st inclusive, the due date for the final return is 6 months after the date of death.

Corporate Returns (T2)

• six months after year-end

T4 and T5 Filing Deadlines:

• T4 Slip (Employee wages and deductions):
• Due Date: Last day of February following the year for which the T4 is issued.
• For example, for the 2023 calendar year, the T4 slips are due February 28, 2024.
• T5 Slip (Investment income):
• Due Date: Last day of February following the year for which the T5 is issued.
• For example, for the 2023 calendar year, the T5 slips are due February 28, 2024.

HST Filing Deadlines:

1. For quarterly filings: The deadline for HST filing is one month after the end of each quarter.
2. For example, for the quarter ending March 31, the due date would be April 30.

• For annual filings: The HST return is due three months after the fiscal year end.

HST Remittance Deadlines:

1. For quarterly filings: The deadline for HST remittance is one month after the end of each quarter.

• For example, for the quarter ending March 31, the due date would be April 30.
• For annual filings: The HST remittance is due three months after the fiscal year-end.   

Balance due date

For Individuals / self-employed: April 30^th

For Corporate

i) Two months after year-end

ii) Three months after year-end for certain Canadian-controlled private corporations (CCPCs)

Note: When a due date falls on a Saturday, Sunday, or public holiday recognized by the CRA, your return is considered on time if the CRA receives it or if it is postmarked on the next business day. Your payment will be considered received on time.

Interest on taxes you owe

If you have a balance owing for the current tax year and don’t pay it by April 30^th (payment due date), the CRA will start charging you compound daily interest as of May 1^st. This includes any balance owing if your return has been reassessed.

The rate of interest the CRA will charge on current or previous balances can change every 3 months based on prescribed interest rates.

Penalties:

The CRA may charge you a penalty if any of the following applies:

Failure to file a return by the due date

Penalty for first occurrence:

Penalty is the total of:

1.  5% × unpaid tax
2. 1% × unpaid tax × number of months return is outstanding (not more than 12)

Penalty for subsequent occurrences:

Penalty is the total of:

1. 10% × unpaid tax
2. 2% × unpaid tax × number of months return is outstanding (not more than 20)

Repeated failure to report income equal to or greater than $500 (more than once in any three-year period)

Penalty is the lesser of:

1. 10% × amount of unreported income
2. an amount equal to 50% of the difference between the understatement of tax (or the overstatement of credits) and the amount

False statements or omissions, knowing or gross negligence

Penalty is the greater of:

1.  $100
2.  50% of the understated tax (Penalty may be waived if the taxpayer voluntarily tells the CRA about the amount that was not reported.)

Misrepresentations in tax planning arrangements

Penalty is the greater of:

1.  $1,000
2. 100% of gross revenue derived by person from activity

Participating in a misrepresentation

Penalty is the greater of:

1. $1,000
2. 50% of tax sought to be avoided (to a maximum of $100,000 plus the fee charged)

Source: CRA Website /Income Tax Act

If you have any questions or any other tax and accounting issues, please feel free to reach out to Source Accounting Professional Corporation (CPA) at 647-930-8130

 Source Accounting is a full-service accounting firm in Mississauga, dedicated to individuals, small and medium-sized businesses, providing tax preparation, corporate tax filing, accounting, bookkeeping services, payroll solutions, etc. We serve clients from Mississauga, Toronto, Brampton, Milton, Hamilton, Oakville, and across GTA. And if you find this post helpful, please let us know in your comments.

Disclaimer: The above contents are provided for general guidance only, based on information believed to be accurate and complete, but we cannot guarantee its accuracy or completeness. It does not provide legal advice, nor can it or should it be relied upon. Please contact/consult a qualified tax professional specific to your case.