Thank God it’s May, an expression used by many accountants after tax season.
A few items to take note of:
Next Tax Filing Date
June 15th, personal tax returns due for those that are self-employed but any taxes payable were already due. Same is true for your annual HST filing.
CRA, My Account
Register for My Account on the CRA web site to access your tax information on line, such as your notice of assessment and statement of a/c, now and in the future. Corporations can register for My Business Account to access their tax information.
Personal Tax Installments
If you receive CRA forms to pay installments for 2016 make sure you pay them on time to avoid penalty and interest. Next installment is due on June 15th.
CRA Request for Receipts
If you e-filed your return you may get a request over the next few months to provide a copy of some receipts such as donations, medical or tuition. Ensure you open all mail from CRA and that you respond to these requests within the 30 day period to avoid reassessment and denial of these deductions. Keep your receipts handy.
QuickBooks
If you are self-employed and did not have proper tax information for 2015, consider setting up a proper set of books now for 2016. It will save you time and money in the long run. Make sure you get proper training to ensure you get started on the right track.
New Business
Many will venture out to start a new business in 2016. Make it a positive experience by talking to an accountant first to get the right advice at the right time.
Incorporation
Talk to your accountant or lawyer about the pros and cons of incorporation.
Corporate Year Ends
If you incorporated recently, you can select any month, within the first 12 months, as your year end. Talk to your accountant about the best month for your company.
Corporate Tax Returns
Corporate tax returns are due 6 months after the year end of the business but any taxes payable are due after 3 months for most small businesses.
I hope you find this general information helpful. Please consult with your accountant or myself if you have any questions.
This material is provided for general information and is subject to change without notice. Please consult with your professional advisor before you act on any of the above information to ensure it’s right for you.