Last-Minute Tax Filing in Canada: Why Waiting Could Land You in Hot Water This Year

As the tax filing deadline approaches, many Canadians are still putting off their submissions until the last moment.

This tax season presents some new difficulties, making it more vital than ever to file as soon as possible.

The deadline for most individuals to submit their tax returns is April 30, by the end of the day, to also pay any taxes owed.

For self-employed Canadians and their spouses or common-law partners, the deadline is June 15. However, any taxes owed must still be paid by April 30.

“It’s essential to file your tax return on time to avoid being classified as a late filer,” advises chartered professional accountant and GoFile software owner Daniel Toma.

“Filing late can lead to significant penalties, and interest accruing daily at the CRA’s determined rate.”

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The Canada Revenue Agency updated its online systems this year for better processing of electronic documents, though some glitches still remain.

Tax filers delaying their submissions until the last minute may face unexpected delays because of these technical issues, possibly extending the processing time.

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Toma emphasizes that despite these complications, taxpayers are still accountable for submitting their returns on time.

“The CRA believes you should be able to obtain copies of any documents separately through your CRA account.”

If you’re having trouble uploading electronic files to the CRA, you might need to enter each document manually. Toma recommends, “The CRA expects you to do your best to include all tax slips that you’ve seen and to enter them manually into your submission.”

Getting your tax return ready in advance can provide extra time for any unexpected situations that may arise. For instance, some electronic documents may arrive just days ahead of the deadline, as Toma points out.

“My team finished a tax return for me to review yesterday, and then informed me today to hold off because they downloaded more forms,” he explains.

“Documents can appear the day of the deadline, as was the case on April 25.”

If you’re waiting to gather all documents before preparing your taxes and find yourself racing against the clock, Toma suggests sending the CRA an overpayment that can be adjusted afterward.

“If…

If someone is worried about not reporting some extra income, they might consider making an additional payment to their CRA account as a precaution. This could serve as a safety measure.

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Filing taxes can also lead to the possibility of receiving a refund, which is an added motivation to file on time.

Many young Canadians plan to use their refunds to pay off expenses or invest, according to recent polling.

It’s crucial to meet filing deadlines to avoid incurring penalties that could replace any money owed to taxpayers.

“Over half of those who file will receive a refund,” says Toma. “Filing is often beneficial for your finances, not just for compliance, as it could result in getting some money back.”