The self-employed tax deadline for the 2017 year is approaching on June 15, 2018. Are you prepared?
Even though the deadline for sole proprietors to file is June 15, it is better to file earlier as the Canada Revenue Agency (CRA) can start applying interest to any amount you owe beginning after April 30.
If you won’t owe, or you were unable to file by April 30, you still have until June 15, 2018 to get your tax return filed. But if you miss the June deadline, the CRA charges a late-filing penalty of 5 per cent of your balance owed, plus 1 per cent for each month late up to 12 months, in addition to interest. If you’ve missed filing in a previous year, this amount could be even higher — 10% of your balance owed, plus 2 per cent for each month late up to 20 months.
It’s not only penalties and interest you’ll have to worry about if you file late. Late filers can face CRA prosecution. This doesn’t necessarily mean jail time, but it could mean huge additional penalties.
Between April 1, 2012 and March 31, 2017, the courts have convicted 408 taxpayers for tax evasion. This has involved court sentences totalling approximately $44 million in court fines and 3,103 months in jail.
The bottom line — don’t miss the 2017 tax deadline and be honest in your tax reporting.
For some sole proprietors, there may be a specific reason you are reluctant to file. Two common scenarios we hear about are:
- You don’t have receipts
Not having receipts is tricky but there may be solutions available. And not filing won’t make the problem go away. A Licensed Insolvency Trustee can help refer a business owner in this situation to financial professionals who can help.
- You’ll owe and you’re not sure how you’ll pay
This can be a big one, especially if you know you’ll owe in the thousands or tens of thousands and don’t have the funds available. In this case, you’ll need a plan in place. If you find yourself in this situation, don’t contact the CRA directly. Get in touch with a Licensed Insolvency Trustee first. These financial professionals can help you deal with debt and create a plan to pay the amount owing.
In either case, burying your head in the sand isn’t going to work. No matter how much you want it to be true, the CRA won’t go away and avoiding filing your sole proprietor tax return will only make the situation worse.
If you’re in a precarious tax situation or have more questions about the self-employed tax deadline, Fuller Landau Debt Solutions can help. Our qualified debt consultants can answer your questions and manage debt.
Contact us today for a free consultation. Call (416) 927-7200 or visit www.fullerdebt.com.