Tax Deadline in Canada – When Are Taxes Due in 2023

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The Canada Revenue Agency (CRA) sets strict deadlines for filing your taxes. If you miss this deadline, it can lead to significant fees and penalties.

The simplest way to avoid late filing is to know the individual and business tax deadline for 2023 and finish the work early.

Tax return filing deadline can vary depending on your circumstances. To help you meet the tax deadline in Canada, we’ve put together this handy list of dates and deadlines for 2023.

Personal tax deadline

Personal Tax Filing And Payment Deadline 2023

The Canada Revenue Agency (CRA) sets strict deadlines for filing your taxes, and there are interest and penalties for failing to do so. You must ensure that you stay on top of your deadlines, or this could result in a bigger tax bill and other unwanted consequences.

Get a calendar and write down the important dates, so you don’t forget:

Individual Tax Returns

The deadline for filing and payment of individual tax returns in Canada is April 30 every year. If the deadline falls on a weekend, the CRA extends it to the next available regular workday.

Because the usual deadline of April 30 is a Sunday, the individual tax filing and payment deadline for your 2022 personal tax return is May 1, 2023.

All returns and payments must be received or postmarked by the deadline, and e-submissions must be submitted before midnight local time on the day they are due.

Self-Employed and Sole Proprietor Tax Returns

The tax filing deadline for self-employed individuals and sole proprietors are slightly different. You must file the paperwork by June 15. So, for your 2022 taxes, you must file by June 15, 2023.

The situation can become tricky if there is a tax balance owed. The payment is due on April 30, but since it falls on a Sunday, it’ll be due on May 1, 2023. Any late payment will result in a late payment penalty.

It is vital to file these taxes on time, especially if you owe and don’t want to pay the penalty.

Tax Instalments for Individuals

Some individuals may be required to make tax instalments throughout the course of a year if the tax owing is greater than $3,000 for either of the previous two years. These instalments are made mandatory by the CRA, which is a way to avoid paying taxes in one large lump sum on April 30 of the following year.

For individuals, tax instalment payments are due by the following dates:

  • March 15
  • June 15
  • September 15
  • December 15

Any late instalment payment could result in instalment interest that may be assessed by the CRA in the following year.

Penalties And Interest For Late Filing And Late Payment For Personal Tax

Be sure to file your taxes by the deadline and remit any balance owing on time to avoid interest and penalties.

Late filing will cost you a penalty fee of 5% of the amount you owe plus 1% for every month your return is late up to 12 months. For example, if you owe $1,000 and you are late in filing your tax return for 9 months, the late filing penalty alone is $140 ($1,000 x 5% = $50, plus $1,000 x 1% x 9 months = $90)

You’ll also be charged interest on taxes you owe at the prescribed interest rate, which is subject to change by the CRA each quarter.

The penalties may even double if you were charged a late filing fee in any one of the previous three years and you have received a demand to file notice from the CRA. This means the penalty will increase to 10% of the balance you owe, plus an additional 2% you owe for each full month that your return is late, up to 20 months.

Why Is It Important To File Your Personal Tax Return?

Besides avoiding interest and penalties, you should file a personal tax return with the CRA to receive any refunds you may be entitled to.

You may also wish to file your personal tax return to qualify for other income-tested tax credits and benefits, such as the Canada Child Benefit (CCB), Goods and Services Tax/Harmonized Sales Tax (GST/HST) credit, Climate Action Incentive Payment (CAIP), Old Age Security (OAS), and Guaranteed Income Supplement (GIS).

These examples are not exhaustive. By filing your personal tax return by the deadline, you can be sure to qualify for any tax credits or benefits that you may be entitled to, depending on your personal tax circumstances.

Other Important Dates for Personal Tax

There are other dates to consider in addition to filing your personal taxes:

RRSP

March 1, 2023, is the deadline for contributing to an RRSP for the 2022 tax year, except for the year you turn 71. Any contributions made not exceeding your RRSP limit can be deducted against your 2022 taxable income.

TFSA

January 1, 2023, is the date your TFSA contribution room increases by another $6,500. Any income earned within the TFSA account is tax-free. This is also the date you can re-contribute all or a part of your withdrawals into your TFSA from the previous year without incurring an overcontribution penalty.

corporate tax deadline

Corporate Tax Filing And Payment Deadline 2023

If you have an incorporated business, you must file a corporate tax return annually, regardless of whether a tax balance is due. The tax filing deadline and payment deadline differ from personal income taxes. Businesses must file a corporate tax return within six months after the end of the corporation’s tax year, which is its fiscal accounting period.

If a corporation has a balance owed, the payment is generally due within two months of the end of the fiscal year.

For example, suppose your fiscal year ends on September 30. In that case, your tax filing will be due on March 31 of the following year, and any balance owed must be paid by November 30.

There is an exception where the tax payment may be due within three months (rather than two months) after the fiscal year-end if the corporation meets the following three criteria:

If all three conditions are met, the payment is due on December 31 (rather than November 30) for a business with a fiscal year-end on September 30.

Tax Instalments for Corporations

Some corporations may be required to make tax instalments throughout the course of a year if the tax owing is greater than $3,000 for either of the previous two years. These instalments are made mandatory by the CRA, and it is a way to avoid paying taxes in one large lump sum on the tax payment due date.

Corporate tax instalments are generally due at the end of each month from the start of the fiscal year. For example, if your fiscal year is from October 1, 2022 to September 30, 2023, the first instalment will be due on October 31, 2022. The second instalment will be due on November 30, 2022 and so on, until the end of the fiscal year.

There is an exception where the corporation may qualify for quarterly instalments (rather than monthly instalments) if the corporation meets the following three criteria:

  • The business has a perfect compliance history
  • The business claimed the Small Business Deduction (SBD) in the current or previous year
  • The business earned less than $500,000 of taxable income

Under this scenario, for a corporation with a September 30 fiscal year-end, the first quarterly instalment will be due on December 31.

Any late instalment payment could result in instalment interest that may be assessed by the CRA after the completion of the corporation’s fiscal year.

GST/HST Filing and Payment Deadline

The filing frequency determines the GST/HST return due dates. Here’s a look at the different filing and payment deadlines under each scenario:

Monthly Filer

If you file GST/HST returns on a monthly basis, the tax return and any amounts owing are due one month after the end of the reporting period. For example, if the reporting period is April 1-April 30, the GST/HST filing and payment are due on May 31.

Quarterly Filer

If GST/HST returns are filed quarterly, the return and any payment owed are due three months after the end of the reporting period. So if the reporting period is April 1-June 30, the GST/HST filing and payment are due on July 31.

Annual Filers (Excluding Individuals with December 31 Year-End)

Corporations with annual GST/HST filing frequency must file and pay three months after the end of the reporting period. For example, if a corporation with a reporting period from April 1, 2022 to March 31, 2023, the GST/HST filing and payment are due on June 30, 2023.

Annual Filers (Individuals With December 31 Year-End)

For self-employed individuals who file GST/HST returns annually and also have a December 31 year-end, the filing deadline for the GST/HST return is June 15, 2023.

GST/HST payment owed is due on April 30, but since it falls on a Sunday, it’ll be due on May 1, 2023. The filing and payment deadlines are the same as a personal income tax return for self-employed individuals.

GST/HST Tax Instalments (for Annual Filer only)

If you are an annual filer, you may be required to make quarterly GST/HST instalments throughout the course of a year if the GST/HST owing is greater than $3,000 for either of the previous two years. These instalments are made mandatory by the CRA, and it is a way to avoid paying taxes in one large lump sum on the tax payment due date.

The due date for the GST/HST instalment is one month after the end of each fiscal quarter. For example, if the fiscal quarter spans from May 1 to July 31, the GST/HST instalment will be due on August 31.

Any late instalment payment could result in instalment interest that may be assessed by the CRA after the completion of the GST/HST reporting period.

Penalties And Interest For Late Filing And Late Payment For Business Tax

Failure to file or pay your business taxes by the set deadlines can lead to significant penalties and interest.

The late return penalty on business taxes is 5% of the amount owed, plus 1% for every complete month the return is late up to 12 months. For example, if you owe $10,000 and are late for 10 months, the late filing penalty alone will be $1,500 ($10,000 x 5% = $500, plus $10,000 x 1% x 10 months = $1,000).

Your business will also be charged interest on taxes owed at the prescribed interest rate, which is subject to change by the CRA each quarter.

The penalty increases if the CRA issues a demand to file and if they have assessed a failure to file penalty in any of the three previous tax years. In this instance, the penalty is 10% of the unpaid tax when the return is due, plus 2% of the unpaid amount for each full month that the return is late up to 20 months.

Other Tax Deadlines for Business

T4 Filing

Businesses with employees working for the company must file a T4 information return with the CRA and issue T4 slips to all employees by February 28, 2023. T4 filing is mandatory for all employers to report CPP, EI, and income taxes withheld and remitted to the CRA throughout the year. It also states the employment income that the employee reports on their personal tax return.

T5 Filing

Suppose your business paid dividends to yourself or one of the shareholders. In that case, the business must file a T5 information return with the CRA and issue T5 slips to the applicable shareholders by February 28, 2023. The shareholder will require this information to report the necessary dividend income on their personal tax return.

Timely filing is a vital part of the tax season process. Missing these deadlines could result in late filing penalties and interest accrual.

Reach Out To Plan Ahead For Your Next Tax Filing

Failing to meet the individual or business tax deadline in 2023 can have many negative consequences. Making a note of the appropriate tax filing and payment deadlines is critical to staying compliant with the CRA. Contact our team of experts if you have any questions about your taxes. We can plan your tax filings ahead of the deadline to ensure you file on time, receive the refunds and benefits you are entitled to, and avoid late fees and penalties.

To learn more about how we can help you meet the CRA tax deadline in 2023, contact us today for a free consultation.

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