Tax Tips & Pits: Why should you file your tax return?

Whether you are owed by or owing to CRA, clearly the recommendation is to file 2013 as soon as possible.

If you qualify for refundable tax credits like the GST credit, why not file?

If you qualify for dependant payments like the Universal Child Care Benefit, why not file?

If you qualify for reduced premiums like MSP, why not file?

If you are owed a refund, why not file?

Now if you owe tax and if you have not filed, your continued procrastination will continue costing you money.  In fact, the day after April 30 – May 6 this year due to CRA’s e-services shut down in early April – the tax you owe may have a 5% penalty applied, and not to be alarmist, but that penalty could be as high as 50% of taxes payable.

As each month passes, an additional 1% penalty is applied.

In addition to the possible penalty, Canada Revenue Agency (CRA) charges 5% interest compounded daily on taxes and penalties owing.

To clarify tax return deadlines for proprietors.  It is true that the due date is June 15 for the filing of the return, but if taxes are due, they were payable on April 30, like everybody else’s.  If you haven’t filed, then it might be wise to estimate taxes due and pay that amount now.

Whether you are owed by or owing to CRA, clearly the recommendation is to file 2013 as soon as possible.

By the way, not filing is sometimes in reaction to not being able to pay the taxes due. Why file if you can’t pay anyway?

If you can’t pay, filing sooner than later is still the best course of action. CRA looks much more kindly on those taxpayers who self-identify than those they have to chase.

The next step you should take after filing is to call CRA and state a payment date or offer installments.

There’s no guarantee a plan will be accepted but at least your file will be tagged as cooperative.

Filing late is a sure way of attracting CRA’s attention, and I’m not aware of anyone who enjoys being contacted by CRA.

If you would prefer CRA to stay out of your life, file your return. File on time, preferably.  And don’t let a CRA enquiry go unanswered, even if your initial answer has to be, “I’m working on it”.

Ron Clarke has his MBA and is a business owner in Trail, providing accounting and tax services. Email him at ron.clarke@JBSbiz.ca. To read previous Tax Tips & Pits columns visit www.JBSbiz.net.

Just Posted

Métis Flag flies in Trail on Louis Riel Day

Area students, officials and public attend flag raising at Trail City Hall

Early Trail borrowed a couple of names from the U.S.

Place Names: Connection between Trail and Butte, Montana

First Past the Post is the only option

Letter to the Editor by Dieter Bogs of Trail

Acid tainted vehicles from Trail spills, held for evidence

Contaminated vehicles are evidence in ICBC’s lawsuit against “negligent parties”

Kootenay Boundary swears in 7 new directors

Regional District of Kootenay Boundary swears in 7 new directors and 6 returning directors

Winter weather hits parts of Canada

As some parts of the country brace for cold, parts of B.C. remain warmer than 10 C

Canada’s health system commendable overall but barriers to care remain: UN

The United Nations says Canada’s health care system is “commendable” overall but vulnerable groups still face barriers to quality care.

Unique technology gives children with special needs more independent play

UVic’s CanAssist refined seven prototypes aided by $1.5M government contribution

Kelly Ellard’s boyfriend has statutory release revoked

Darwin Duane Dorozan had several parole infractions that found him ‘unmanageable’

Doctor’s note shouldn’t be required to prove you’re sick: poll

70% of Canadians oppose allowing employers to make you get a sick note

German-born B.C. man warns against a ‘yes’ vote on proportional representation

Agassiz realtor Freddy Marks says PR in his home country shows party elites can never be voted out

Fashion Fridays: 5 coats you need this winter!

Kim XO, lets you know the best online shopping tips during Fashion Fridays on the Black Press Media Network

Saskatchewan college honours memory of Humboldt Broncos coach

Darcy Haugan wore jersey No. 22 when he was a star player with the Briercrest College Clippers

Liberals to act quickly if Saturday midnight deal deadline breached: source

Oh Friday, Canadian Union of Postal Workers said it would not bring the latest offers to a vote of its members

Most Read