Tax Filing and Compliance – Canada

Anyone who owes income tax for the year must file a return. This includes income from employment, self-employment, investments, or other sources not fully covered by tax withholding.

If CRA sends you a demand to file, you must comply. Failure to file when demanded can result in penalties and prosecution.

Must file to receive GST/HST credit, Canada Child Benefit, Canada Workers Benefit, and provincial benefits. Even with no income, filing ensures benefit eligibility.

Anyone with self-employment income must file to report income and pay CPP contributions. Extended filing deadline (June 15) but payment deadline remains April 30.

Earliest date to electronically file your return. Early filers typically receive refunds within 8 business days. CRA recommends electronic filing for fastest processing.

Last day to contribute to RRSP for the 2025 tax year deduction. March 2 because March 1 falls on Sunday. Contributions after this date count toward 2026.

T1 personal income tax return and any balance owing due by April 30. Late filing penalty: 5% of balance owing + 1% per month late (up to 12 months). Interest accrues on unpaid balances.

Extended filing deadline if you or your spouse is self-employed. However, any taxes owed are still due April 30. Interest applies on unpaid balance after April 30.

Annual statement of employment earnings and deductions. Shows gross income, tax withheld, CPP/EI contributions. Employers must issue by end of February.

Reports interest, dividends, and other investment income from Canadian sources. Issued when investment income exceeds $50. Check CRA My Account for all slips.

Main personal income tax return filed with CRA. Includes schedules for capital gains (Schedule 3), employment expenses, business income, and rental income.

Official CRA response to your filed return. Shows assessed income, deductions, tax owing or refund, RRSP contribution room for next year. Usually received within 2 weeks of e-filing.

Refunds processed within 2 weeks for e-filed returns with direct deposit. Paper returns take 8 weeks. Track status through CRA My Account or MyCRA app.

Pay via online banking (CRA as payee), CRA My Payment (credit/debit), pre-authorized debit, or at Canada Post. Payment arrangements available for those unable to pay in full.

CRA can reassess returns up to 3 years after original assessment (6 years in some cases). They may request supporting documents. Keep records for at least 6 years.

If you disagree with your assessment, file a Notice of Objection within 90 days. Can be done online through CRA My Account. Free process — no cost to object.