How To Prepare Your Business For Tax Filing 2023? A Free Guide

by | Jun 1, 2022

The deadline for tax filing is one of the most crucial things for taxpayers to remember. For returns and payments, the Canada Revenue Agency has strict deadlines.

Many small business owners start to worry about missed deadlines and errors in tax filing. To avoid possible CRA fines, submit your taxes as soon as possible. Also, to make the 2023 taxes stress-free, we’ve included all the important dates for your tax filing.

1. When Can You File Your Taxes in 2023?

Most business owners (Sole-Proprietors or Partnerships) should do their tax filing by May 1, 2023; if their company’s fiscal year matches the calendar year. However, certain companies may choose to use a non-calendar fiscal year. In this case, the deadline for filing tax returns is six months after the end of the fiscal year.

2. What is a Deadline for Self-Employed Tax Returns?

If you are self-employed, the CRA gives you until June 15, 2023, to file your taxes. Thus, giving you a little more time. But remember that you still have until April 30, 2023, to pay any taxes you owe.

Important!

You will need your social security number and a T4 or final payslip to file your taxes.

Check another interesting article by Yogi & Associates. What is T4 Slip in Canada? A 2022 Step-By-Step Guide

3. Deadlines For Final Tax Filling:

If you are a decedent’s legal representative, you must see that the CRA receives its final tax return. For example, the taxes return is due on April 30 if the person passes away between January 1 and October 31 of the tax year. But, it is due six months later if they die between November 1 and December 31.

The CRA moves the deadline to June 15 if the decedent, their spouse, or common-law partner was self-employed. But it still starts charging interest on April 30.

“There may be liberty and justice for all, but there are tax breaks only for some.” –Martin A. Sullivan.

4. Penalties For Late Tax Filling

What happens if you file your personal taxes late?

There are no penalties for late tax filing when you have received a refund or owe no extra taxes. But, if you file late and owe money, CRA imposes a penalty equal to 5% of the taxes outstanding, plus an additional 1% for each month that passes beyond the due date, up to a maximum of 12 months.

For instance, if you owe the CRA $10,000 and file your taxes five months after the due date, the CRA will impose a 10% penalty, increasing your taxes obligation to $11,000.

What if I am self-employed and file taxes late?

You may have to submit some extra returns as a small business owner. Such as those for payroll, GST/HST remittances, and withholding. Penalties and interest are incurred for failing to follow the CRA’s payroll duties.

For the first time, failing to deduct might result in a penalty of 10%; for other failures. Then, the penalty increases to 20%. Penalties for late filing or nonpayment begin at 3% and can reach 20%.

Note!

If you want to file early, the CRA will begin electronically accepting returns via its NETFILE program in February 2023.

5. Need Help With Your Tax Affairs?

Tax filing can be stressful if you aren’t prepared to complete your return and pay your taxes on time. So, managing your bookkeeping immediately is the most crucial action you can take.

We at Yogi & Associates provide small business owners in Mississauga, Brampton, and surrounding areas with bookkeeping services. In addition to updating your books, we can prepare your trial balance.

So contact us today! And learn how simple it is for us to prepare your company for Canadian tax filing.

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