Unfiled Tax Returns | CRA Tax Accountant
Unfiled tax returns are a common problem for individuals, corporations, trusts and estates. If you have unfiled tax returns, a tax accountant can help you deal with unfiled tax returns and even avoid penalties and prosecution through the Voluntary Disclosure Program.
Individuals are required to file tax returns by April 30 for the preceding calendar year if employed or June 15th if the person carried on business as a sole-proprietor or was a cohabitation conjugal partner of a person who carried on business for the year. If an individual does not have Part I tax payable in the year, they are not required to file a return. However, even if you don’t have a balance owing because of instalment payments or source deductions, you still have to file a return. There are special rules for deceased individuals and their surviving spouses which a local tax accountant can help you work out.
Trusts and estates are required to file a tax return within 90 days from the end of their year.
Corporations have to file tax returns within six months of their fiscal year-end if at any time in the year the corporation was a resident in Canada, carried on business in Canada, has a taxable capital gain, disposes of taxable Canadian property or has tax payable under Part I for the year.
In some cases, non-resident persons may also be eligible to file a return to be taxed on a net profit and not a gross-receipt basis. A Toronto tax accountant can help you figure out if this is beneficial for you.
In addition to interest, unfiled tax returns expose you to penalties of 5% of the balance owing plus 1% of the balance owing for each full month the return is late (up to a maximum of 12 months). Late filing penalty rates double if you have failed to file for multiple years. A professional tax accountant can help you avoid the penalties associated with unfiled tax returns.