BU466 Chapter 14: Chapter 14
Chapter 14 – Rights and Obligations Under the Income Tax Act
Filing Deadlines
• Corporations – must file within six months after the end of the taxation year
• Individuals - must file on or before April 30, unless idividual’s spouse has a business in the year
then it is June 15
• Deceased individuals – died after October or before filing date (April 30th or June 15th), must be
filed by the later of:
o Six months after the date of death, or
o The usual filing date (April 30th or June 15th)
• Trusts or estates – within 90 days after the end of the taxation year
Requirements to File a Return for Individuals
• Only required to file if one of the following applies:
• A balance of tax is owing for the year
• A capital property has been disposed of in the year
• Non-resident individual has a taxable capital gain
• Idividual’s hoe uyer pla alae or lifelog learig pla is a positive aout
• A return is demanded by the minister
• Individuals benefit from filing if refund due, entitled to GST credit, Canada Child Tax Benefit, OAS
GIS
Electronic and Other Filing Options
• Corporations with annual gross revenues of $1 million or more are required to file their income
tax returns electronically, there are penalties for non-compliance
Failure to File Return
• Balance of tax owing * (5% + 1% per complete month outstanding) to a maximum of 17% of tax
owing
• Repeat offence – penalty above doubled to maximum of 50% of tax owing
Failure to Report Income
• Penalty only if the unreported income and any of the three prior years was equal to or greater
than $500
• Lesser of 10% of income omitted or 50% of understated unpaid taxes
False Statements or Omission
• Penalty equal to the greater of $100 and 50% of the difference in tax liability
• Must be gross negligence – which include errors which amount to little more than careless
omissions
Interplay of Penalty Provisions
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Document Summary
Chapter 14 rights and obligations under the income tax act. Filing deadlines: corporations must file within six months after the end of the taxation year. I(cid:374)dividual"s ho(cid:373)e (cid:271)uyer pla(cid:374) (cid:271)ala(cid:374)(cid:272)e or lifelo(cid:374)g lear(cid:374)i(cid:374)g pla(cid:374) is a positive a(cid:373)ou(cid:374)t. Individuals benefit from filing if refund due, entitled to gst credit, canada child tax benefit, oas. Electronic and other filing options: corporations with annual gross revenues of million or more are required to file their income tax returns electronically, there are penalties for non-compliance. Failure to file return: balance of tax owing * (5% + 1% per complete month outstanding) to a maximum of 17% of tax owing, repeat offence penalty above doubled to maximum of 50% of tax owing. Failure to report income: penalty only if the unreported income and any of the three prior years was equal to or greater than . Lesser of 10% of income omitted or 50% of understated unpaid taxes.
