The time of taxes has once again arrived and it is important for Small Business Owners and Sole Traders to be informed of certain important dates.
Incorporated Businesses are required to file their taxes no later than 6 months after their fiscal year end, while unincorporated Small Businesses (including self-employed people and their spouses or common-law partners,) have until June 15, 2019 to file their tax returns.
Filing Taxes Late
The Canada Revenue Agency (CRA) is tough on latecomers so be cautious. They will make you pay an extra 5% on the balance owing, plus an additional 1% of the balance owing for every full month that your return is late, to a maximum of 12 months. If you have obtained late-filing penalties in any of the three preceding taxation years, your late filing penalties are doubled. So don’t take too long to file your taxes before it is too late.
If you’re self employed, your not off the hook
Although the June 15 deadline may leave you believing you don’t need to start worrying about taxes yet, unincorporated business owners are still required to pay any owed taxes by April 30, 2019. So if you have any owing taxes pay them well before the deadline in June or else you might find your self paying some interest. To keep track of your taxes, there are various accounting softwares such as QuickBooks Online that can help you determine whether you owe taxes, and how much.
The CRA have taken advantage of technology and created fast, secure, and easy online services. Once registered for an account on the CRA website, you are able to manage your taxes online. Not only can you file your income tax and benefit return electronically, but you can also make a payment and track the status of your return via online. For another available resource to assist you in your tax efforts, contact Steve Robinson at 1-866-930-5109 (Toll Free).
For those incorporated Businesses that wish to simplify the process, you can authorize the CRA to withdraw an amount from your bank account on a specific date or dates, enroll for direct deposit or update banking information and view capital gains and losses.
Auto-fill My Return
Relieve yourself of some of those time-consuming tasks regarding your taxes by using the Auto-fill my return service. It automatically fills in areas of your income tax and benefit return, simplifying the tax filing process. To learn more about Auto-fill my return, visit the CRA website for more information.