“Normally I miss deadlines like a Stormtrooper misses Jedi” – Patrick Rothfuss
Tax Filing Deadline Next Week
As a final reminder, the tax filing deadline is next Tuesday, April 30th. If you have self-employment income, the deadline is June 15th.
Again, regardless of when your deadline is, if you owe money, then the payment deadline is April 30th. See our below explainer on how the different deadlines affect those who owe.
CRA Tax Deadlines Explained
The CRA filing deadline is April 30th, or June 15th if you have self-employment income. You are only subject to a late-filing penalty if you have a balance owing with CRA. If you know you will receive a refund, you will not be penalized for filing after your deadline.
CRA has two types of penalties: late-filing, and late-payment. Late-filing is by far the most punitive. The penalty is 5% of your 2018 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months.
Example: If you owe $5,000 to CRA and you file one week late, you will be assessed a late-filing penalty of $5,000 x 5% = $250.
The “penalty” for late-payment is simply an accrual of interest of 6% a year.
Example: You owe $5,000 to CRA and you pay your balance one month after the deadline. You will be assessed late-payment interest of $5,000 x (1/12th of 6%) = $25.
Conclusion: If you have a balance owing with CRA, filing a few days after your deadline can be expensive. Paying a few days after the deadline will have more minor consequences.
Be Aware: CRA Scams Abound
As we enter the full swing of tax season, it is important to remember that scammers posing as CRA agents are also getting into full swing. The CRA has put together a helpful list of things they MAY and things they WILL NEVER do, depending on the type of communication (phone contact, email contact, mail contact).
The CRA website page on the subject is here. One thing CRA will never, ever do is threaten you with arrest or prison, or demand immediate payment by e-transfer, bitcoin / other e-coins, prepaid credit cards or retail gift cards (iTunes, Amazon, etc). They will NEVER do this.
As always, if you are contacted by the CRA or by someone you think might be a scammer, feel free to contact us and let us know. If we prepare your taxes, we can contact the CRA on your behalf to determine whether the contact you received is legitimate or not.
Weekly Update – By The Numbers
- The TSX closed at 16,614, up 1 points or 0.01% over the past week. YTD the TSX is up 16.00%.
- The DOW closed at 26,543, down -17 points or -0.06% over the past week. YTD the DOW is up 13.78%.
- The S&P closed at 2,940, up 35 points or 1.20% over the past week. YTD the S&P is up 17.27%.
- The NASDAQ closed at 8,146, up 148 points or 1.85% over the past week. YTD the NASDAQ is up 22.77%.
- Gold closed at 1,288, up -17.00 points or 0.86% over the past week. YTD gold is up 0.23%.
- Oil closed at 62.87, down -1.13 points or -1.77% over the past week. YTD oil is up 37.18%.
- The USD/CAD closed at 0.7427, down -0.0041 points or -0.55% over the past week. YTD the USD/CAD is up 1.35%.
- The MSCI closed at 2,154, down -6 points or -0.28% over the past week. YTD the MSCI is up 14.27%.
- The Euro Stoxx 50 closed at 3,500, up 1 point or 0.03% over the past week. YTD the Euro Stoxx 50 is up 16.63%.
- The FTSE closed at 7,428, down -32 points or -0.43% over the past week. YTD the FTSE is up 10.40%.
- The CAC closed at 5,569, down -11 points or -0.20% over the past week. YTD the CAC is up 17.71%.
- DAX closed at 12,315, up 93.00 points or 0.76% over the past week. YTD DAX is up 16.63%.
- Nikkei closed at 22,259, up 58.00 points or 0.26% over the past week. YTD Nikkei is up 11.21%.
- The Shanghai closed at 3,086, down -185.0000 points or -5.66% over the past week. YTD the Shanghai is up 23.74%.
- The 10-Yr Bond Yield closed at 2.51, down -0.0500 points or -1.95% over the past week. YTD the 10-Yr Bond Yield is down -6.69%.
Sources: Dynamic, Canada Revenue Agency
This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.