Unit 2 Flashcards
Corporations filing deadlines
6 months after YE
Individual filing deadlines
- April 30
- June 15 (if taxpayer or spouse earns business income)
- Deceased: later or (1) regular deadline and (2) six months from DOD
Individual tax due date
April 30
Corporation tax due date
2 months after YE OR 3 months after YE for CCPCs (if claimed SBD in the current, or preceding year and all have taxable income of less than $500K)
Individual installments
Must pay if balance due is est to be >$3K AND was >$3K in one of two prior years
Corporation installments
Must pay if >$3K and was >3K in the PY
Appeal process
- Receive NOA
- Gather support and file notice of objection within 90 days for corp or 1yr for individuals
3.Appeal results of NOO within 90 days
Individual return required if:
- tax payable
- TCG in the current year
- demand to file
- HBP or LLP
- non-resident with TCG
Corporate return required if:
- tax payable
- resident of Can, carrying on business in Can, realizable TCG, disposes of property
Individual installment schedule
Instalments are due on March 15, June 15, September 15, and December 15 [ITA 156(1)].
The amount of each of the four instalments is the least of:
i. 1/4 × estimated net tax owing for the current year
ii. 1/4 × net tax owing for the immediately preceding year
iii. first two instalments: 1/4 × net tax owing for the second preceding year;
last two instalments: 1/2 × net tax owing for the preceding year minus first two instalments for the current year
Corp Installment schedule (if >500K income, or >10M tax cap, did not claim SBD, non-compliant) (Monthly)
choosing the option with the greatest deferral of cash outflow (that is, the smallest instalments) [ITA 157(1)]:
i. 1/12 × estimated net tax owing for the current year
ii. 1/12 × net tax owing for the immediately preceding year
iii. first two instalments: 1/12 × net tax owing for the second preceding year; last 10 instalments: 1/10 × net tax owing for the preceding year minus first two instalments for the current year
Corp Installment schedule (if <500K income, or <10M tax cap, claimed SBD, compliant) (Quarterly)
The least of:
i. 1/4 × estimated net tax owing for the current taxation year
ii. 1/4 × net tax owing for the immediately preceding taxation year
iii. first instalment: 1/4 × net tax owing for the second preceding year; last three instalments 1/3 × net tax owing for the preceding year minus first instalment for the current year
ITA for interest and penalties
[ITA 161(1)]
prescribed rate + 4% compounded daily for missed payments
Penalty for unfiled return is the total of: 5% × unpaid tax 1% × unpaid tax × number of months return is outstanding (not more than 12)
Directors liability
“Director’s Liability”, when a corporation that an individual is a director of fails to deduct, withhold, remit, or pay amounts to CRA, the directors can be liable for those amounts.
a) CRA has demonstrated that they cannot recover the amounts due directly from the corporation
b) CRA has issued an assessment against the directors within two years from the time they last ceased to be directors; and
c) The directors did not exercise the due diligence required to prevent the failure to deduct, withhold, remit or pay the amounts owing
CRA reassement
- CRA has up to 4yrs
- or at anytime if there is misrepresentation or a waiver is filed
