Weekly Tax Tips
File Your Return on Time
Date: 8 Apr 2011
To avoid paying penalties, ensure you file your tax return by the filing deadline even if you are unable to pay the tax owing. Interest will accrue on the balance owing, but you will avoid the penalty of 5% of the unpaid tax at the time the return is due. You will also avoid a further penalty of 1% of the unpaid tax times the number of months the return is not filed (to a maximum of 12 months).
Generally, the filing deadline for 2010 personal tax returns is May 2, 2011 (as April 30th falls on a Saturday). For self-employed persons (if you or your spouse carried on a business in 2010, other than a business whose expenditures were mainly in connection with a tax shelter), your return for 2010 has to be filed on or before June 15, 2011. Keep in mind however that any taxes owing are still due on May 2, 2011 (as April 30th falls on a Saturday). Interest will be charged on late payments.
This tax tip is a publication of BDO Canada LLP on developments in the area of taxation. This material is general in nature and should not be relied upon to replace the requirement for specific professional advice. The information in this tax tip is current as of 8 Apr 2011.
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