When are your 2023 taxes due?      Personal Taxes (Individuals), Businesses and Corporations all have different due dates.  Let’s talk about the different tax deadlines for personal returns, small businesses, and corporations.

 

When are 2023 taxes due for Individuals? – In Canada, the personal tax deadline is April 30 of each year.  We are an authorized CRA e-filer – which means we can EFILE directly with CRA without an access code, we receive an immediate confirmation and, in some cases, can receive an express NoA almost immediately.  As a bonus, we reconcile the slips that CRA already has with the slips you provide to ensure nothing is missed.    Rental income is included in your personal return.

Any amounts owing after calculating your return are due with your taxes on April 30.   If you are required to make installment payments throughout the year, please follow the schedule provided by CRA or ourselves to avoid interest payments.

When are 2023 taxes due for Self-Employed Businesses including Sole Proprietors and Partnerships? – the deadline for individuals with self-employment income is June 15.   Returns for your spouse can also be filed on June 15 without late filing penalties to allow the correct calculation of family benefits. The wrinkle here is that all taxes due must be paid by April 30.

HST returns for self-employed persons are normally due Jun 15, 2024, however, your payment deadline is April 30, 2024.

We advise our clients to make their quarterly installment payments and adjust their April 30 payment according to their estimated performance.

Late filing strategy – Late filing penalties are assessed as a percentage of amounts owing – by paying an estimate you nullify the amount owing.    We call this the “Just throw money at it” strategy.

When are 2023 taxes due for Corporations? – T2 Corporate Income Tax Returns are due 6 months following the corporate year-end date.  For example, a corporation with a year-end of December 31, 2023, would have a filing deadline of June 30, 2024.   A corporation with a year-end of July 31, 2023, would have a filing deadline of January 31, 2024.

Generally, corporations have to pay their taxes in installments with the final payment due two or three months after the fiscal year end.

For individuals and corporations with a non-Dec 31 year-end, your return is due 3 months after your fiscal year-end date.

A word on installments – You may have to pay installment payments if your taxes owing in the prior year were more than $3,000 or if you expect your tax liability to be at least that high.  If CRA advises that installments are required and believes you will not have a tax liability, we can lower the installments to match your estimated tax.  When required installments are not made, CRA will assess interest on the missing interest payments.

If you are interested in a conversation to understand the deadline for filing and payments let’s book a call.

 

Here’s a link to the CRA website with more information below

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/important-dates-individuals.html

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