Tax Question:
Top five common Corporate Income Tax issues faced by clients: General Tardiness
Facts:
A corporation has to file numerous returns each year, many related to taxes. Each filing with CRA or the provincial government has a deadline. Failure to meet these deadlines could become expensive in terms of penalties and interest as well as being a red flag for CRA helping them to identify who they should audit.
One sign of a healthy company is that all the tax returns such as corporation tax, payroll remittances, GST return, annual reports, PST returns and T slips are all filed on time. In most cases these filing requirements are the same each year, however, we often find that corporations either ignore or forget about these deadlines. Often the reason is they are busy with the day-to-day management of the corporation, or cash is tied up in other areas. No matter the reason, tax filings should always be made on time. The simple reason is that if CRA or the provincial governments are getting the returns at the appropriate time they are less likely to be concerned with the status of the company. Constantly late or forgotten filings bring you up on their radar and make it more likely that you will be red-flagged for an audit. In addition, some missed deadlines carry significant penalties which are multiplied by successive failures. In order to meet deadlines we have some suggestions:
If you would like more information on this topic, please contact a member of the Empire CPA team by filling out the contact form below.
Canadian and foreign tax laws are complex and have a tendency to change on a frequent basis. As such, the content published above is believed to be accurate as of the date of this post. Before implementing any tax planning, please seek professional advice from a qualified tax professional. Empire, Chartered Professional Accountants will not accept any liability for any tax ramifications that may result from acting based on the information contained above.
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