June Filing Deadlines: Five Types of Taxpayers Affected

There are two tax filing deadlines this month: June 15 and June 30; and they affect five different taxpayer profiles between them. Do you know which ones might apply to you?

June 15 is the relevant filing deadline for:

• Proprietors: T1 returns for unincorporated business owners and their spouses must be filed by midnight June 15 to avoid late filing penalties.
• Investors: The second personal tax instalment remittance of the year is due.
• Snowbirds: The Closer Connection Exemption Statement for Aliens (IRS Form 8840) should be filed by all individuals who are not U.S. citizens and failed the substantial presence test there, but were in the US less than 184 days in 2015 and have a closer connection to Canada than to the U.S. (see Knowledge Bureau’s Cross Border Taxation Course for details)
• US Ex-pats living in Canada: 1040NR returns are due for U.S. citizens residing outside the U.S.

June 30 is the relevant filing deadline for:

• Investors: The Tax Free Savings Account (TFSA) Return (Form RC243) should be filed for those who have taxes payable due to excess contributions, non-resident contributions, non-qualified or prohibited investments in the plan or who were provided an advantage in relation to their TFSA.
• Advisors/Promoters: The Reportable Transaction Information Return (Form RC312) must be filed by advisors or promoters who participate in an avoidance transaction. An avoidance transaction is one where the fee is contingent on obtaining a tax benefit, the agreement prohibits the disclosure of the transaction, or where the transaction includes contractual protection.

Advisor Alert: Be sure to contact your clients to advise them of the filing deadlines above and engage them in proper compliance to avoid penalties and interest that will unnecessarily erode wealth.

Client Alert: Unsure about your obligations? Call a DFA-Tax Services Specialist™ and/or your MFA-Retirement and Estate Planning Specialist™ to assist you with forms and withdrawal strategies for paying any remittances due to CRA.

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