Knowing when the return is due, and more importantly when the tax is payable is important to avoid costly interest and penalties.

Be aware that the due date for filing is different than the day the corporation must pay it’s outstanding tax bill.

Corporate Filing Due Date

The due date to file your corporate income tax return is six (6) months following your corporation’s year end.

For example, if you have a

• December 31st year-end –> Return is due June 30th.
• March 31st year-end –> Return is due September 30th.

When Corporate Taxes Must be Paid

Existing corporations are required to pay tax by installments throughout the year if their income tax bill is more than $3,000. New corporations are exempt from the installment requirements in their first year.

If you have a new corporation, or if you will have a balance owing, knowing your due date will help ensure you avoid costly penalties.

Due Date for CCPC

The due date for a Canadian controlled private corporation, claiming the small business deduction and whose taxable income is less than $500,000, is three months following the corporations’ year-end.

• December 31st year-end –> Balance is payable by March 31st.
• June 30th year-end –> Balance is payable September 30th.

For all other corporations, the due date is two months following their year-end.

Penalties

The penalty for remitting taxes late is 5% of the unpaid amount and 1% per month on any past due amounts.

A tax bill of $10,000 can result in a penalty of $500 if remitted late.

When To Meet With Your Accountant

It’s important to plan filing your corporate tax return before the end of the corporation’s fiscal year.

If you have a fiscal year-end that does not fall on December 31, you should meet with your accountant around December 31st to ensure that your annual tax slips are prepared and filed on time.

Our Services

If you’re looking for help filing your corporate tax returns and related tax-slips, please give us a call at 905-858-0775 to get started. We can help you reduce the amount of tax you will pay by taking full advantage of the corporate structure.

Ottawa, Ontario, June 29, 2012… The Canada Revenue Agency (CRA) announced today that the average refund for the 2011 tax-filing season is more than $1,580—an increase of about $70 per person since last year.

Many Canadians are receiving their refunds in as little as seven days by switching to electronic filing. Among the 25.4 million returns received as of June 14, 16.8 million were filed using electronic services, which is up from 16.1 million at the same time last year. Paper filing continues to decrease in popularity. So far this year, 8.6 million paper returns have been filed compared to the 8.8 million that were filed last year. The CRA’s electronic services are the quickest way for Canadians to file, and these services are easy and secure to use. Those who sign up for direct deposit through the CRA’s online services are able to receive their refunds even faster.

Tax filers are discovering the benefits of using the CRA’s electronic services year-round and not just during tax-filing season. Using electronic services, such as My Account and Quick Access, allows you to track your refund, view your benefit and credit payments and your registered retirement savings plan information, set up direct deposit, and much more. For more information on electronic services, go to www.cra.gc.ca/electronicservices.

This year, new tax credits such as the volunteer firefighters’ tax credit and the children’s arts tax credit helped Canadians reduce their taxes. Volunteer firefighters were able to claim up to $3,000 on their tax return and parents were able to claim up to $500 for enrolling their children in prescribed programs. Other credits such as the public transit tax credit and pension income splitting continue to help Canadians keep more money in their pockets.

The CRA takes this opportunity to thank Canadians who filed their income tax and benefit return on time. If you missed the April 30 filing deadline, it is in your best interest to file as soon as possible to receive benefit payments such as the GST/HST credit or the Canada child tax benefit and to avoid paying more penalties and interest charges.

You could get up to $265 for 2011 for each adult and child in your family to help with the sales tax you pay on goods and services. This amount is adjusted for inflation each year.

If you pay rent or property tax, you could get up to $917 for 2011 to help with the sales tax you pay on energy and the property taxes you paid and qualifying seniors can get up to $1,044 for 2011.

Families living in Northern Ontario can get up to $204 for 2011 to help with their home energy costs, as it is often higher in the North due to more severe winters. If you are single, you can get up to $132.

You must be eligible to at least one of the benefits (OSTC, OEPT or NOEC) to eligible to receive OTB.

You must complete Ontario Form ON-BEN which is part of the 2011 T1 General Income Tax and Benefit Return package and file it with the Canada Revenue Agency (CRA).  If file your individual tax returns later than April 30th may result in delay in receiving OTB payments.

Public transit amount

You can claim cost of monthly public transit passes or passes of longer duration such as an annual pass for travel within Canada on public transit for 2011.

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