Canada Taxes

Basic Information on Canada Tax Filing Requirements

What are the Tax filing Deadlines?

The Canadian tax year is January 1 through December 31, which is the same as the US tax year.

April 30, 2024: Deadline to file your taxes

June 15, 2024: Deadline to file your taxes if you or your spouse or common-law partner are self-employed

Typical ways to do your taxes?

1. NETFILE-certified tax software (electronic filing) such as H&R Block and Intuit, the maker of TurboTax.
2. Through a tax preparer using EFILE-certified tax software (electronic filing) available to professional tax preparers and is not to be confused with the publicly available NETFILE. EFILE is a form of Electronic Data Interchange.
3. Paper tax return.

What are common Canada Federal Tax Return? 

 T1 – Personal: The T1 is the standard personal tax return for all Canadian individuals.

T2 – Corporate: The T2 is the tax return for registered corporations in Canada.

T3 – Trust: The T3 is used to file taxes for a trust in Canada.

• Schedule 2 – Federal Amounts Transferred from your Spouse or Common-Law Partner
• Schedule 3 – Capital Gains (or Losses)
• Schedule 5 – Amounts for Spouse or Common-Law Partner and Dependants
• Schedule 6 – Canada Workers Benefit
• Schedule 7 – RRSP, PRPP and SPP Unused Contributions, Transfers, and HBP or LLP Activities
• Schedule 8 – Canada Pension Plan Contributions and Overpayment
• Schedule 9 – Donations and Gifts
• Form T2036, Provincial or Territorial Foreign Tax Credit
• Form T2209, Federal Foreign Tax Credits

What are Other Jurisdictions for collecting Tax besides Federal ?

Most provinces employ a system of federal-provincial agreements whereby the tax is collected on behalf of a province by the federal government. Quebec is the only province that collects provincial personal income taxes by their agency. Filing deadlines generally match those of the federal government.

• Alberta
• British Columbia
• Manitoba
• New Brunswick
• Newfoundland and Labrador
• Northwest Territories
• Nova Scotia
• Nunavut
• Ontario (example Form ON428 – Ontario Tax
• Prince Edward Island
• Quebec
• Saskatchewan
• Yukon

• T4 slip: Statement of Remuneration Paid
• T4A COVID-19 amounts for benefits received and taxable
• Tips, gratuities, or occasional earnings
• Foreign employment income for income earned outside Canada 
• Taxable capital gains when you sell or transfer capital property.
• Commission
• Employment and self-employment income
• Pension and savings plans income – like old age security, CPP or QPP benefits, or pensions from other countries
• Investment income – like interest, dividends, and capital gains
• Benefit income – workers’ compensation benefits, social assistance payments
• Amounts that are not reported or taxed

2023 federal tax bracket rates

• 15% up to $53,359 of taxable income
• 5% between $53,359 and $106,717
• 26% between $106,717 and $165,430
• 29% between $165,430 up to $235,675
• 33% on any amount taxable income exceeding $235,675

Ontario Province

• 05% up to $49,231 of taxable income
• 15% between $49,231 and $98,463
• 16% between $98,463 and $150,000
• 16% between $150,000 and $220,000
• 16% on any taxable income exceeding $220,000

 What are some tax filing compliance steps by CRA?

• CRA voluntary Disclosure Program gives an opportunity to submit previously un reported or under reported amounts on already files tax returns. Unfiled taxes can also be addressed by the program.
• CRA New Worth Audit is a review of taxpapers life style and assets compared with the income reported by the taxpayer to identify discripancies.
• CRA initiated GST/HST audit.
• CRA Tax audit In Toronto, especially small business since there is discretion in reporting income and expenses claim
• Information on foreign income is often shared between countries. Example CRA (Canada Revenue Authority) and IRS (Internal revenue Service) of USA have agreement to share earnings information. Bank accounts held outside Canada are legal but need to be disclosed to the Canadian tax authorities. If you Live in Canada or deemed resident of Canada, global or international income is reported in return. Credit can be claimed for foreign tax paid.