Last updated: June 09 2015
Time’s up for procrastinators... midnight on Monday June 15 is the T1 tax filing deadline for unincorporated businesses.
T1 tax specialists and wealth managers will want to call their delinquent clients now and send notices, as a public service, to Chambers of Commerce and other trade organizations to remind their members to file.
Those who owe money to CRA have been incurring interest costs on the balances due since May 1, but to avoid late filing penalties—a complete waste of precious resources—it’s important to file on time. Proprietorships are owned by a sole individual, usually a business start-up that can morph into a corporate structure in the future.
However, what’s important now is that the proprietor will add net business income — after business deductions and capital cost allowance claims—to other income earned in the year. Business losses will offset all other income in the year, which makes them valuable, and subject to audit as well.
With all the audit/expense documentation conflicts in the news these days, particularly relating to certain senators, it’s important to educate proprietors on the “basics” when it comes to tax reporting:
Advisor Alert. Tax Services Specialists, in their capacity as educator, advocate and steward of their clients’ resources, should be sure to council for audit-proofing with every “last minute” proprietorship return. Firms with promising junior tax preparers should consider taking the T1 Professional Tax Preparation – Proprietorships course over the summer, to be better prepared for next tax season.
Client Alert. Next year, April 30, 2016, falls on a Saturday. If you must procrastinate, do speed up your date: File and pay your taxes by Monday May 2 to avoid interest costs on taxes due.