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Understanding CRA Tax Filing Deadlines and Penalties for Small Business

 

Sole-Proprietor (or Partnership) CRA Tax Return Deadline

Any monies owed to the CRA are due and payable by April 30th.

  • Your Income Tax (for either of the above businesses) is completed on CRA form T2125 as part of your Personal (T1) Tax Return;
  • Your fiscal year-end will always be December 31st and cannot be changed.

Although your payment is due April 30, the deadline to submit/file your Personal (T1) Tax return with Business Activity is June 15th.

CRA Tax Filing - Understanding GST / HST

Payment for GST and HST is due 90 days after your reporting period.

Hiring Employees and Revenue Canada Income Tax

Hiring an employee - You will have to register for a Payroll Account with CRA and get your employee to complete a TD1 form within seven days of new employment.
Example of remittance due date - 
The pay period ends January 25th. Your employee gets paid for this period on February 1st. You are a regular remitter.
When will you have to make the remittance of the Source Deductions to CRA? You will determine the due date based on the pay date of February 1st.
Since you are a regular remitter, you have to remit the employee's deductions plus "employer's contributions" on or before March 15th.

Records

Retention period - There is a minimum six year requirement for keeping your books, records, andtheir related accounts and source documents.
Early destruction - In some cases, CRA may give you written permission to destroy your records before the six years have passed.

Registration

Most employers, trustees, and administrators need a payroll program account.