FAQ'S

FAQ

Popular Question

We have compiled few questions which will assist you to prepare and file your tax return more effectively and efficiently.

Income Tax Basics

  • It’s a prescribed form through which a person can furnish the details of his /her income earned through different sources of income and taxes paid for the relevant financial year to the Canada Revenue Agency.

  • Yes, you are required to file your income tax return even if you did not earn any income as it helps you to receive Child benefits, GST credit and Climate action rebate etc.

  • Yes, even if your employer deducts and deposits your T4 on regular and timely basis, you are still required to file your tax return. This helps in determining any dues or eligibility for refunds.

  • E-Filing is not mandatory but strongly recommended in certain cases like if you want to claim refund and claiming Child benefits, GST credits etc.

  • You can yourself e-file your return with us. It is a simple, secure, and fully automated platform for you to file your Income Tax Return. If you want an expert assisting you through this process, you can buy our ‘Advisor-Assisted Plans’ starting from just $60.00 only.

  • Exempt Incomes are not chargeable to tax as per Income Tax law i.e. they are not included in the total income for the purpose of tax calculation while Taxable Incomes are chargeable to tax under the Income Tax law.

  • No, you cannot claim deduction for personal expenditures while computing your income tax as per the Income Tax Laws.

  • For the purpose of Income Tax, anyone who has attained the age of 65 years is called as Senior Citizen.

  • SIN is a short form for your Social Insurance Number. Every Canadian citizen and PR has 9 digits unique code. For international students and people of temporary work visa has temporary SIN which starts with"9".

Refunds, Revisions & Dues

  • We can assist you checking your refund with CRA with your authorization. Also, ensure correct bank account number is given in the return. In case of any further queries you can contact us.

  • Please ensure your return is filed within the due date otherwise you won’t be file revised return. You can file T1 adjustment online for the error or missed information. Should you need help, you can always contact me.

  • T183 is one page authorization to allow us to file your tax return online with CRA. It is mandatory for a tax filers to have it on their clients behalf.

  • CRA has prescribed different offices for every province which you could check from Canada.ca. However, it encourages every Canadian to file online.

  • Not filing your tax returns on time will affect getting your refund on time and also you will not be getting your child benefits and other entitled credits.

  • No, you don’t have to attach any document along with your income tax return. You are required to submit documents only when the CRA asks you to submit.

  • E-filing your income tax return is faster, secure and simpler than filing offline. As the returns are filed online, they are processed by the systems automatically and, therefore, the refunds are issued faster.

  • Normally CRA can ask for the documents of 6 years prior to the current Financial Year. Therefore, you must maintain your documents at least for this period. However, in some special cases, Income Tax Department can also ask for documents pertaining to periods older than 6 years, so it is advisable to keep your documents as long as possible.

  • NOA or the Notice of assessment is issued by CRA after you file your income tax return. This means that CRA has reviewed your return and it is generally asked by all the lenders for your credits and review purposes n Canada.

  • Form T2125 is to report business and professional income for people who are self employed in Canada. This form contains details of all the business income and expenses including use of motor vehicle, home office etc.

  • In Canadian Income Tax Act, there are certain payments including salary, interest etc. in which the one who makes such payment is liable to deduct tax. Tax is finally adjusted with the final tax payable at the time of computation of income tax return.

    These taxes are reported by the employer and income provider in the forms T4 and T5 respectively. The due date of filing these forms are February 28 every year.

  • In Canada, an employer is not liable to deduct taxes for their independent contactors, however they have to report their income on the form T4A. It is the responsibility of the contractor to report and pay his/her taxes on their income tax return.

  • In Canada this is applicable to the construction industry. All payments made by the construction company to their trades men and sub-contractors are to be reported on the form T-5018. This is form is due within six month from the end of the fiscal year of the corporation.

  • You can split your other pension with your spouse but you cannot split your CPP received from the government with your spouse. You can always contact us for further clarifications.

Late Returns

  • There is no penalty for filing a late return after the tax deadline if a refund is due. If you didn't file and owe tax, file a return as soon as you can and pay as much as possible to reduce penalties and interest.

    The late-filing penalty is 5% of your 2022 balance owing, plus an additional 1% for each full month that you file after the due date, to a maximum of 12 months

  • In case you don’t file your return, a notice can be issued by the CRA requesting to file the tax return. CRA could also notionally assessed your income based on estimation and demand taxes with interest and penalties. Until you file, your refund and other benefits will be put on hold and will not be released by CRA.

  • Normally, the due date of filing of income tax return for individuals is following April 30th for the year ended in December 31.

    For self employed individual the due date of June 15th for the December year end.

    However, all taxes owing needs to be paid by April 30h to avoid any interest and penalties/