Halfway Mark: Tax Season is in Full Swing in Canada

CRA has received approximately 14.6 million tax returns so far this year, representing approximately half of the returns filed last year. It is clear that tax accountants are in their annual overload mode as 56% of returns received have been efiled, and despite the recent federal budget public relations push for the File My Return (FMR) for simple tax returns, the uptick has been lacking. Taxfilers who are receiving refunds are getting an average of $2,066 and those who are paying owe an average of $4,330. 

Things to think about as tax season closes in on the May 1 deadline for individual filers:  if you are declaring proprietorship income, the tax filing deadline is June 15, however, if you owe money, interest starts to accumulate on unpaid amounts on May 2.

Remind taxpayers that the prescribed interest rate has now risen to 9% and weigh into the Knowledge Bureau poll on this expensive matter. We asked our readers:  Do you think taxpayers will now pay off tax debt sooner?  The no vote is leading so far: 73.47%.  What’s your take?

Other deadlines to note:  Be sure to file form T1135 Foreign Income Verification Statement on time on May 1 and note these other important filing deadlines:

• T1-ADJ: Late elections for pension income splitting for 2019 expire May 1, 2023
• T400A: Notice of Objection File on the later of one year after filing due date or 90 days after receipt of Notice of Assessment or Reassessment or Determination
• New CRA Service Feedback Form RC193 – Submit a complaint or suggestion online: canada.ca/cra-service-feedback