Due dates for Tax Returns and payments required by CRA

Due dates for Tax Returns and payments, required by CRA from Canadian Corporation in a taxation year.

The purpose of this article is to provide an incorporated small business owner with a short list of what needs to be filed to the CRA throughout full year taxation cycle. Keep in mind that this is a basic list and more filing requirements could potentially apply in your specific situation.

1. HST Returns

There are three types of reporting periods:

- monthly: each return is due on the last day of the month following the reporting month. In this case the taxpayer has one month to prepare and finalize the return.

- quarterly: each return covers three months period and is due on the last day of the month following the end of reporting period. In this case the taxpayer also has one month to prepare and finalize the return.

- annual: return covers twelve months period and is due on the last day of the third month following the end of reporting period. In this case the taxpayer also has three months to prepare and finalize the return.

When filing annually, remember that if the total tax for the year exceeds 3,000, quarterly advance instalment payments should be made during next year to avoid interest calculated by CRA.

An HST return can be filed online using GST/HST netfile at the CRA website, or submitted to the bank with the payment (in that case make sure you submit the actual return, not just the payment voucher), or mailed to CRA at the following address:

Canada Revenue Agency
Sudbury Tax Centre
P.O. Box 20004 Stn A
Sudbury ON P3A 6B4

1.1 HST Instalments

If corporation's total HST paid for the year exceeds 3,000, quarterly instalment payments are required during next year. The instalments should be paid at the last day of each quarter of corporation's reporting year. For example, if the reporting year ends on December 31, the instalments in the next fiscal period should be made on March 31, June 30, September 30 and December 31. Then, after the end of the reporting period the taxpayer has three months to finalize the HST return which has to be filed on or before March 31. The instalments paid during the period are subtracted from the total tax due on the return.

Each instalment should equal to 1/4 of the least of: (i) previous year's tax
(ii) expected current year tax.

In case the instalment payments are not paid on time, CRA will calculate interest at a prescribed rate.

2. Source deductions

Payroll source deductions are due on the 15th of each month following the reporting month. Therefore taxpayer has 15 days to finalize the PD7A return and make the payment. The CRA will sometimes provide an option to small businesses with clear filing history to file the PD7A reports and make the payments quarterly. Note that unlike with any other payments, being late with source deductions will result prompt notice and demand for payment by the CRA.

3. Corporation Income Tax Return

The T2 Corporation's Income Tax Return is due six months after the corporation's year end. The corporation's year end is determined by the corporation, with the first period typically ending within 12 months of the date of incorporation. The payment of corporation's income tax is due within three months after the corporation's tax year end. Shall there return not be filed on time, the CRA may calculate the late filing and/or failure to file penalties. The Corporation's Income Tax Return should be mailed to:

Canada Revenue Agency
Sudbury Tax Centre
1050 Notre Dame Avenue
Sudbury ON P3A 5C1

3.1 Corporate Income Tax Instalments

If corporation's total tax paid for the year exceeds 3,000, quarterly instalment payments are required in the next year. The instalments should be paid at the last day of each quarter of corporation's income tax reporting year. For example if the reporting year ends on December 31, the instalments of the next fiscal period should be made on March 31, June 30, September 30 and December 31. Then after the end of the reporting period the taxpayer has six months to finalize the income tax return. The instalments paid during the period are subtracted from the total tax due on the return.

Each instalment should equal to 1/4 of the least of:

(i) previous year's tax
(ii) expected current year tax.

In case the instalment payments are not paid on time, CRA will calculate interest at a prescribed rate.

4. T4 and T5 returns

The T4 slips along with the T4 SUMMARY must be filed on or before February 28th. For example the 2015 T4s are to be filed before February 28, 2016. Completed slips and summary form can be filed online or mailed to:

Ottawa Technology Centre
Canada Revenue Agency
875 Heron Road
Ottawa ON K1A 1G9

Similarly, the T5 slips accompanied by T5 SUM form are filed before end of February of the following year. Completed slips and summary form can be filed online or mailed to:

Ottawa Technology Centre
Canada Revenue Agency
P.O. Box 9633, Station T
Ottawa ON K1G 6H3

5. Annual Return

Annual Return is not submitted to the Canada Revenue Agency, instead it goes to Industry Canada in case of federal corporation, and is filed separately online or by mailing a completed form. There is a fee of 20 dollars for online filing, while filing on paper costs 40. Companies incorporated in Ontario file their annual return at no charge together with tax return on Schedule 546.

The above list covers usual requirements for Small business corporation filings with the CRA, however in some individual situations other forms may need to be filed. Agencies, such as Service Canada, WSIB may also require some reporting. Contact us to book a free initial 1 hr consultation to find out more now!

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