After a long year with lots of changes to the way we run our businesses due to COVID, the 2022 tax season is on the horizon. Whether you’re looking for the deadline to file personal tax or the penalties rate for late filing to avoid – you’ve come to the right place.
When are taxes due in Canada 2022?
Personal Income Tax Return
Even you don’t owe any taxes, you must file a tax return in order to access any tax credits and benefits you might be entitled to, such as the GST/HST tax credit, Canada Child Benefit, as well as the Old Age Security pension and the Guaranteed Income Supplement.
- May 2, 2022* is the deadline for filing your 2021 personal income tax return and paying any tax you owe, unless you’re self-employed.
- June 15, 2022: If you or your partner is self-employed, but the deadline to pay is still May 2, 2022.
*Because April 30 our usual tax deadline falls on a Saturday, The CRA will extend the deadline to the next business day which will be May 2, 2022.
Corporation Income Tax Return
No later than six months after the end of each tax year (your company’s fiscal period).
Savings & Pension Plan
RRSP: March 1, 2022 is the deadline for contributing to an RRSP for the 2021 tax year.
What happens if you miss your deadline?
Filing late means paying interest:
- 1% per month that you’re late (up to 12 months), PLUS
- 5% on the balance you owe.
This amount does not include the additional interest penalty.
The CRA may charge an even larger penalty if the corporation failed to file a penalty in any of the three previous tax years. The penalty is:
- 10% of the unpaid tax when the return was due, PLUS
- 2% of this unpaid tax for each complete month that the return is late (up to 20 months)
When should you hire an accountant?
Many small business owners who are looking to save money may think they can’t afford an accountant. But look at how long it would take you to do certain tasks (such as taxes), and ask yourself, is that a good use of your time?
Personal taxes are one thing, but when it comes to your business, hiring a professional accountant, is a no-brainer.
At Dang & Co, our experienced accountants will ensure your T’s are crossed and your I’s are dotted. Peace of mind, limited liabilities and a maximized refund will more than justify our fair, reasonable cost.
