A tax deadline is the date by which taxpayers must file their taxes. This allows the government, upon receipt of all the T1 General Forms, to know how much money it will need to collect in taxes. It also ensures that people do not forget to pay their taxes.
The tax deadline is typically imposed by the government in order to give taxpayers a date by which they must file their taxes. Most years in Canada, the tax deadline is April 30. For the fiscal year 2022, the tax deadline will be May 1, 2023 because April 30 falls on a Sunday.
How Many Canadians File Their Taxes Every Year?
In 2015, 26.4 million Canadians filed taxes. By 2019, the total number of tax filers in Canada was equal to 27.2 million individuals.
According to the Canada Revenue Agency, about 85% of taxpayers file their taxes on time.
According to Statista, Ontario is the province with the most taxpayers with more than 10.3 million of them. Quebec comes second with more than 6.4 million individual taxpayers.
Can You Avoid Filing Taxes Or File Late In Canada?
If you file your taxes late in Canada, you may be subject to late-filing penalties and interest charges on any taxes owed. The penalties for late filing are based on how late your return is filed and the amount of taxes owing.
If you owe taxes and file your return after the due date, the penalty is 5% of your taxes owing plus 1% of your taxes owing for each full month your return is late, to a maximum of 12 months.
This means that $5,000 owed for 4 months would cost $5,000 * (5% + 4%) = $450 in late fees and would require $5,450 to fully repay.
It is important to file your taxes on time to avoid these penalties and interest charges. If you are unable to file your taxes on time, you may be able to request an extension or request relief from the late-filing penalties under certain circumstances. You can contact the Canada Revenue Agency (CRA) for more information.
The Business Tax Deadline
The typical business tax deadline for businesses with calendar financial years (ranging from January 1, 2022 to December 31, 2022) is May 1, 2023. Business tax returns for fiscal years not based on calendar years are due six months after the end of their fiscal year.
Important Tax Dates In Canada
There are a few important tax dates in Canada:
- December 31: The end of the tax year and the in-year initial deadline to contribute to an RRSP.
- January 1: The start of the tax year.
- February 28 of the following year: the employer T4 filing due date
- March 1 of the following year: The extended deadline to contribute to an RRSP.
- April 30: The filing deadline for most people. If you owe money, you must pay by this date.
- June 15: The filing deadline for self-employed individuals.
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