FAQ
Tax Questions Answered
Straight answers on Canadian tax deadlines, HST, corporate returns, payroll, US taxes and CRA letters – from a tax consultant in Embrun, Ontario
Frequently Asked Questions
Categorised answers. Each answer can be expanded later with direct links to the relevant service page.
Deadlines
Important Dates and filling deadlines
When is the personal tax deadline in Canada?
April 30. If you or your spouse are self-employed you have until June 15 to file, but any balance owing is still due April 30.
When is my corporate tax return due?
Six months after your fiscal year end. A December 31 year end means June 30. Tax owing is generally due earlier – two months after year end, or three for CCPCs claiming the small business deduction.
When are T4 slips due?
The last day of February for the previous calendar year, to both your employees and the CRA.
What happens if I file late?
The CRA charges a late-filing penalty on any balance owing, plus daily compound interest. If you are late repeatedly the penalty doubles. Filing late with nothing owing costs nothing, but it can delay benefit payments.
Personal Tax
For individual and families
What documents do I need to bring?
See the full checklist below. In short: T4s and other slips, RRSP receipts, medical and donation receipts, tuition forms, childcare receipts, and last year’s Notice of Assessment
Can you file returns from previous years?
Yes. We regularly bring clients current on several years at once and can apply for relief from penalties and interest.
What credits do people most often miss?
Medical expenses, moving expenses, tuition transfers from a child, the disability tax credit, and first-time homebuyer amounts.
How much does a personal tax return cost?
[INSERT FLAT FEE OR STARTING RANGE.] We quote before we start.
Self Employed and Small Business
freelancers, contractors and business owners.
Can I claim my vehicle?
For the business-use portion, yes. Keep a log of business versus personal kilometres – that ratio sets what share of fuel, insurance, maintenance and depreciation you can claim.
Can I claim a home office?
If it is your principal place of business, or you use it regularly to meet clients. The claim is based on the share of your home used for work.
When should I incorporate?
Usually when you consistently earn more than you need to draw personally, since retained profit is taxed at the small business rate. Liability and client requirements matter too.
My books are years behind. Can you fix it?
Yes. We rebuild from bank statements and receipts, bring you current, and file whatever is outstanding.
HST
HST registration, filling and rules
When do I have to register for HST in Ontario?
Once you pass $30,000 in revenue over four consecutive calendar quarters, or in any single quarter. Below that, registration is optional – though it can pay, because it lets you claim input tax credits
How often do I file HST?
The CRA assigns your period by revenue. Most small businesses file annually, larger ones quarterly or monthly.
What is the Quick Method?
A simplified calculation where you remit a fixed percentage of sales instead of tracking every input tax credit. Cheaper for some small businesses – worth checking against your numbers.
What HST rate applies in Ontario?
13%. It changes when you sell to customers in other provinces or export, which is a common source of error.
Payroll
Employees, contractors and payroll setup.
What happens if I remit source deductions late?
The CRA charges a penalty on the amount, escalating for repeat lateness. It is one of the most expensive avoidable mistakes a small employer makes.
Can you set up payroll for my first employee?
Yes – CRA payroll account, pay schedule, deductions and remittances, correct from the first run.
US Taxes
for Canadians with US Tax obligations.
I’m a US citizen living in Canada. Do I have to file US taxes?
Yes. The US taxes on citizenship, not residence. Most people owe nothing once the foreign earned income exclusion and foreign tax credit are applied, but the filing is still required.
I haven’t filed US returns in years.
The IRS Streamlined Filing Compliance Procedures exist for exactly this – typically three years of returns and six years of FBARs, with penalties waived for non-wilful non-filing.
How many days can I spend in the US?
The Substantial Presence Test counts this year plus fractions of the previous two. Many snowbirds cross it without realising. Form 8840 claims the closer connection exception to Canada
I sold a US property. Why was 15% withheld?
That is FIRPTA withholding on the gross sale price, not the gain. Recovering the excess requires filing a US return.
CRA Letters
Notices, reviews and audits
The CRA asked for receipts. Is that an audit?
Usually not – most are review letters, a routine check. Manageable, but they have deadlines.
I haven’t filed in years. Should I come forward?
Almost always yes. The Voluntary Program can reduce or eliminate penalties if you approach the CRA before they contact you.
Can you deal with the CRA for me?
Yes, once you authorise us as your representative.
Working with us
Our process and what to expect.
Do I have to come to the office?
No. Plenty of clients we have never met in person. But the Embrun office is there if you would rather sit down with someone.
How do I send you my documents?
Securely online, by email, or drop them off in Embrun. Whatever suits you.
Do you work with clients outside Embrun and Ottawa?
Yes — across Canada, and with some clients in the United States and United Kingdom.
How much do you charge?
[INSERT PRICING APPROACH.] We quote before starting.