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Due dates to file your business taxes in Canada 

Knowing all CRA dates, including those for corporate taxes, HST, and payroll remittance, is crucial when operating a business. You must be aware of all deadlines or choose to work with a business accountant who will remind you of any important dates, especially business tax due dates, because CRA may charge you expensive interest and penalties if you miss the payment due.

The corporation’s tax filing deadline is typically six months following the conclusion of the tax year.

As a result, the due date varies depending on the corporation’s year-end. When your tax year happens to end on the last day of the month, you would have until the last day of the sixth month after to file your corporation tax return.

Examples:

Your filing deadline is February 28 if your tax year ends on August 31.

The deadline for filing would be November 30 if your tax year ended on May 31.

If the last day of the fiscal tax year does not happen on the last day of a month then, the return must be submitted by the same day of the sixth month after year-end.

The deadline for filing if your tax year ends on October 23 is April 23.

Your filing deadline is June 20 if your tax year ends on December 20.

When a filing deadline falls on a weekend (that is, a Saturday or Sunday) or a CRA-recognized public holiday, your return is deemed filed on time, provided it is delivered to the CRA or has a postmark that is made on or before the next business day.

There are penalties for filing returns after the deadline. Up to a maximum of 12 months, there is a penalty of 5% of the unpaid tax that was due at the time of filing, plus 1% of this delinquent tax for each month the return is late.

If the CRA issued a demand to file the return according to subsection 150(2) and assessed a failure to file a penalty for the corporation in any of the three prior tax years, the corporation would be subject to an even higher penalty. Up to a maximum of 20 months, the penalty is 10% of the outstanding tax balance when the return was due, plus 2% of this delinquent tax for each month the return was late.

If the cause of the late filing or failure to pay an amount when due may be due to circumstances beyond the taxpayer’s control, the penalties and interest may be canceled or waived. Also, your return must be submitted within three years after year-end to be eligible for a tax refund.

The due date for corporate tax payments

Even though you have six months to file your corporation taxes, there is little time left to pay the taxes. Your remaining balance is payable two months after the end of your tax year. You must deliver the remaining balance by that date if you paid your taxes in installments. You must pay the due amount if this is your first tax year or your total tax liability is less than $3,000.

Your tax return must be filed on time, or you will be fined. The 5% penalty is calculated for the unpaid tax on the day that taxes are due. Additionally, 1% for every month until the taxes are fully paid.

The CRA will charge you installment interest if you make your scheduled payment after the due date. They may impose an installment penalty of 25% of the installment interest if it exceeds $1,000.

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