Hi All,
The start of the New Year, for a number of people, was a bit hushed this year. COVID-19 related restrictions put a shrinkage on most celebrations. It was maybe even more difficult as we seemed to be crawling back towards normal life and once again, we inverted route unfortunately. We can only wish that 2022 will be in good health for all.
It’s so sorry to say, no matter what limitations are put in place, taxes are here to stay, through good times and bad. While most of the people, except for Accountants who are starting to prepare for their busy season have perhaps not given much thought to taxes yet, it is a good time to just have some alertness that taxes are coming up.
Significantly, what your tax obligations are beforehand and when taxes are due, have it in mind that you are not hurrying to get things done at the last moment. It also allows you to plan your finances to ensure that you are able to pay any balances due or potentially file your taxes sooner if you are expecting a refund. If you are not a small business owner, you simply have to determine whether you are going to contribute to RRSPs and ensure that you file your income tax return by the deadline. If you are an un-incorporated small business owner there are a few other deadlines that might pertain to you. If you are incorporated, many of your business deadlines are based on your year end date (except dividend and salary declarations which are based on the calendar year).
Regardless of your situation, you should file your tax return even if you literally only have one T4. This allows you to avoid unfriendly letters from CRA, confirms your limits and tax carry forwards such as RRSP contribution limits and sometimes even results in a refund.