Tax return (Canada)
   HOME

TheInfoList



OR:

A Canadian tax return refers to the obligatory forms that must be submitted to the
Canada Revenue Agency The Canada Revenue Agency (CRA; ; ) is the revenue service of the Government of Canada, Canadian federal government, and most Provinces and territories of Canada, provincial and territorial governments. The CRA collects Taxation in Canada, taxes, ...
(CRA) each financial year for individuals or corporations earning an income in Canada. The return paperwork reports the sum of the previous year's (January to December) taxable income, tax credits, and other information relating to those two items. The return is the method by which the Canadian government determines the appropriate amount of tax that should be paid by individuals and corporations. The result of filing a return with the federal government can result in either a refund (money owed to the person or corporation filing the return), or an amount due to be paid. There is a penalty for not filing a tax return. In generalised terms, a tax return refers to the yearly income declaration created by the taxpayer for every individual in the country. This enables tax authorities to declare if an individual is legible to be given back the tax that they had paid over the year. Canadian federal tax returns are filed with the
Canada Revenue Agency The Canada Revenue Agency (CRA; ; ) is the revenue service of the Government of Canada, Canadian federal government, and most Provinces and territories of Canada, provincial and territorial governments. The CRA collects Taxation in Canada, taxes, ...
(CRA). Individuals and corporations who reside or conduct business in the province of
Quebec Quebec ( ; )According to the Government of Canada, Canadian government, ''Québec'' (with the acute accent) is the official name in Canadian French and ''Quebec'' (without the accent) is the province's official name in Canadian English is ...
also file separate returns with Revenu Québec. In addition to tax purposes, the return plays a role in
voter registration In electoral system An electoral system or voting system is a set of rules that determine how elections and Referendum, referendums are conducted and how their results are determined. Electoral systems are used in politics to elect government ...
by including a checkbox asking if the signee if they are willing to have their personal contact information included on a national voter registry which is accessible by
Elections Canada Elections Canada (french: Élections Canada)The agency operates and brands itself as Elections Canada, its legal title is Office of the Chief Electoral Officer (). is the non-partisan agency responsible for administering elections in Canada, Can ...
and its provincial equivalents.


Who should file a Canadian tax return

Canadians who live abroad can sometimes continue filing a Canadian tax return, even if they are not required to do so. Three primary factors are used to determine a taxpayer's
tax residence The criteria for residence for tax purposes vary considerably from jurisdiction to jurisdiction, and "residence" can be different for other, non-tax purposes. For individuals, Physical presence test, physical presence in a jurisdiction is the main ...
: dwelling place (or places), spouse or common-law partner and dependants.


Due date

Normally, Canadian individual tax returns for any specific year must be filed by April 30 of the ''following'' year. There is no provision for generally extending this deadline, but there are a few exceptions. *Tax returns for self-employed individuals and their spouses must be filed by June 15 of the following year. However, any Goods and Services Tax/ Harmonized Sales Tax owing for the period is due April 30. *Tax returns for deceased individuals must be filed by the normal filing deadline or 6 months after the date of death, whichever comes later. Example: Mary dies on January 30, 2004; her 2003 return is due on July 30, 2004 (six months later) and her 2004 return is due on April 30, 2005 (normal filing deadline). This provision is also extended to the surviving spouse. *Tax returns for non-residents electing to file under section 217 are due June 30 of the following year. *By virtue of the Interpretation Act the due date of all individual returns is moved to the next business day when the normal due date falls on a Sunday or Holiday. Although ministerial orders are also used to apply this to Saturday due dates, it is not a legal requirement. *The Federal Finance Minister may extend the deadline in cases of emergency situations such as floods, etc.


Provincial returns

Most provinces employ a system of federal-provincial agreements whereby the tax is collected on behalf of a province by the federal government. Quebec is the only province that collects provincial personal income taxes by their agency. Thus, Quebec residents file tax returns with both the Ministère du Revenu du Québec and the
Canada Revenue Agency The Canada Revenue Agency (CRA; ; ) is the revenue service of the Government of Canada, Canadian federal government, and most Provinces and territories of Canada, provincial and territorial governments. The CRA collects Taxation in Canada, taxes, ...
. Alberta, Ontario and Quebec all collect their own corporate income tax. Filing deadlines generally match those of the federal government.


Tax return software and online filing

Tax returns can be prepared using various commercial software or online. The returns can be either printed and sent to CRA by mail or submitted to CRA electronically through a government service called NETFILE. Some tax preparation companies allow customers to file tax returns for free. The biggest tax preparation companies in Canada are
H&R Block H&R Block, Inc., or H&R Block, is an American tax preparation company operating in Canada, the United States, and Australia. The company was founded in 1955 by brothers Henry W. Bloch and Richard Bloch. As of 2018, H&R Block operates approximate ...
and
Intuit Intuit Inc. is an American business software company that specializes in financial software. The company is headquartered in Mountain View, California, and the CEO is Sasan Goodarzi. Intuit's products include the tax preparation application Tu ...
, the maker of
TurboTax TurboTax is a software package for preparation of American Tax return (United States), income tax returns, produced by Intuit. TurboTax is a market leader in its product segment, competing with H&R Block Tax Software and TaxAct. TurboTax was dev ...
.Tax Preparation Services in Canada - Market Research Report
/ref>


See also

*
Canadian efile EFILE is the system used by the Canada Revenue Agency The Canada Revenue Agency (CRA; ; ) is the revenue service of the Government of Canada, Canadian federal government, and most Provinces and territories of Canada, provincial and territorial ...
* T1 General (form used for individual filing) * Tax return (Australia) * Tax return (United Kingdom) * Tax return (United States)


References


External links

* http://www.cra-arc.gc.ca/gncy/t1gtrdy/menu-eng.html {{DEFAULTSORT:Tax Return (Canada) Taxation in Canada Tax forms