Canadians Want Changes to Tax Filing Deadlines: Poll Results

In May, we asked Knowledge Bureau Report readers whether Canada’s current tax deadlines make sense – and the general consensus was that the existing system needs to change. Some of the suggestions from professionals in the tax and financial services industry might surprise you.

The specific question posed was: “The tax filing deadline for proprietors is June 15. Should this be the deadline for all taxpayers?” And while a majority voted yes (333 of 551 votes, or 60.44 percent), the comments made it clear that things aren’t so black and white.

More importantly, most agreed that Canada’s complex tax system could use an overhaul, starting with some core Canada Revenue Agency dates and deadlines.

Among the comments, the following issues and suggestions were identified:

• Having a different deadline for proprietors to file (June 15) vs pay their taxes owed (April 30) adds unnecessary complexity to the process, and these deadlines should be synchronised on June 15.
• The April 30 filing deadline for all taxpayers would be more manageable if the investment slip (T3s, T5s and T5008s) deadlines were earlier than the end of March.
• A later deadline won’t prevent procrastinating tax filers from filing late.
• The deadline should be moved, but to a date other than June 15. Staggering the filing date for Canadians based on their birthdate or alphabetized by last name were among the suggestions, as was changing the deadline to the end of May.

Read on to see some of the insightful comments made on this engaging and polarizing poll.

The following readers answered “yes,” believing that the deadline for all taxpayers should change.

Joanne highlighted how the investment slip deadline delays the process: “As long as they continue to allow the investment slip deadline to be Mar. 31st, June might give us enough time to get the information they do not include such as ACB’s…when will investment people learn that accountants need this information?”

Jan agreed, and also believes the proprietor deadline should be pushed out: “I think they should extend the deadline for personal returns to June 15th and give the business an extended month. This of course is with no change to when the financial institutions get their slips out to their clients. There needs to be time for people to receive their slips and get them in at a decent time in order to make deadline.”

Diane mentioned that a later date would be fair in light of the e-filing date being later this year, and made another suggestion: “With the e-filing date being delayed and not so great weather in April, some of our tax clients seemed to come in later than normal. Definitely made for the absolutely busiest last three weeks ever! Even though May Day has become one of my favourite days of the year, it would definitely be better that tax season be longer. Even better would be staggering the season over the whole year (kind of like drivers’ licenses).”

Despite the majority of respondents answering “yes” to the poll, a greater number who voted “no” left comments, and here’s what they had to say:

Jodi agreed the investment slip deadline should change, but that the tax filing deadline should not: “People who file late will still file late, regardless of the deadline (take it from a true procrastinator!). It would be much more helpful, as many others have said, to make the deadline for all slips to be filed by February 28th. Maybe March 15th for RRSPs, but there’s no reason T3s and other investment slips can’t be out sooner.”

Gordon concurred, and outlined the impact of the investment slip deadline: “The deadlines should stay as they are. The investment slips (T3, T5, T5008, T5013, etc.) should be issued by the end of February. We often have to do refiles in April because our clients get an extra slip for some investment or other.”

Ken suggested year-round tax filing: “All deferring the deadline will do is drag out tax season longer — the people who are late will still be late. Instead, tax season should be year round based on some classification like birth date or last name (mind you some people would change their last name to buy themselves time, but just put a large fee on that).”

Enzo suggested that business filing return to an old process: “The rules used to allow for sole proprietors to have a ‘natural ’ fiscal period based on the a proper accounting cycle…this way, they were not preparing financial statements just to suit CRA administrative purposes. If your year-end is August 31, you could prepare financial statements in September or October, determine your tax liability at that time, and prepare accordingly. The rules were changed to cover certain loopholes but this made things worse for everyone.”

Kathryn said “no” to the June 15 deadline, but believes it could be tied to date of birth: “Here’s a radical thought…maybe the filing deadline could be tied to an individual’s birthdate; T1 due on DOB or 30 days after birth date. More consistent cash flow for the government, more consistent sleep for tax preparers.”

And the last word goes to Dovid, who commented on the need for a synchronized proprietor deadline: “If there is one thing I would change, it’s that self-employed must pay by April 30th, even though they don’t need to file. This seems incongruous.”

With the June 15 proprietor filing deadline coming up, and many tax and financial advisors focused on addressing the needs of this client base last month, in June we’re asking readers to weigh in on the following question:

“Consulting in a “gig” economy is appealing to many, but is the move from employment to self-employment a smart one?” Share your insights on our June poll!

Additional educational resources: Interested in enhancing education and providing even more value to self-employed clients? Knowledge Bureau courses, including T2 Tax Preparation for Small Business and Accounting for Business Growth and Transition, can help. Free trials of all courses are available, or pursue a designation like Master Financial Advisor – Business Services Specialist.

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