Personal Taxation Q 'n A

Individual taxes and returns are due April 30th each year for the prior year’s income.  Individuals with unincorporated business income have until June 15th to file their tax returns, however the taxes are still due April 30th.  Individuals with income which has not had income tax withheld at its source may be required to remit their taxes on a quarterly basis.The government charges interest daily on taxes past due.  The rate is adjusted quarterly at 4% greater than the average rate on treasury bills in the first month of the preceding quarter.  The interest charged is not tax deductible.  If you are required to make installments and fail to do so, you may have to pay interest on those required installments.  Returns which are filed late are automatically assessed a late filing penalty of 5% of the amount owing.  A further penalty of 1% per month is also assessed for each month not filed to a maximum of twelve months. Repeated offences are assessed harshly.  If you have been assessed a late filing penalty in the last three years, you will be automatically assessed a penalty of 10% of the tax you owe and 2% per month up to twenty monthsuntil you have filed.

Deceased individuals, depending upon when they died, are given extended deadlines. If the individual dies between November 1st and April 30th, the deadline for filing is six months after the date of death for the year ending in December.

Certain refundable credits such as the Child Tax Benefit, GST Credit and various provincial credits will only be processed once the applicable tax return has been filed.