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Global News
2 days ago
- Business
- Global News
The tax deadline for self-employed Canadians is days away. What to know
The tax filing deadline for most Canadians this year was April 30, but there is still a bit more time given to individuals who are self-employed or have a spouse or common-law partner who is self-employed. But the clock is ticking with just days to go, and it is critical to make sure that returns are filed on time and accurately, experts say. 'They get a bit of extra time (compared with individuals filing in April) just because it's a little more involved preparing these returns … to calculate business income and do all the accounting,' says Ryan Minor, director of tax at Chartered Professional Accountants of Canada. 'The final payment is still due April 30. So in April, they should estimate the amount of taxes that are owing and send it in, even though the returns are due a little bit later.' Story continues below advertisement This means that although there are still a few days to submit the returns to the Canada Revenue Agency, the amount that may be owed would have still been due by April 30 of this year, and not paying or filing on time could mean significant fees on top of the original amount owed. 'The penalties (for missing a deadline) are horrendous — a five per cent penalty off the top for missing the deadline, and upward from there,' Minor says. 4:27 CRA on what you need to know for tax season There are also a lot of areas that business owners and self-employed individuals may be overlooking, and filers need to be sure they cover all the necessary areas with time to spare. Get weekly money news Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday. Sign up for weekly money newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy 'Certain things are commonly missed, like a home office expense, automobile expenses, capital cost allowance, where businesses might buy equipment or what they (the CRA) call these 'capital assets,' there are expenses that have limitations like meals and entertainment, there's so many rules,' Minor says. Story continues below advertisement As many self-employed individuals continue to crunch their numbers ahead of the deadline, the CRA is available to answer questions, but getting through can sometimes prove challenging. 'It takes hours to get through sometimes, and dropped calls…. Most of the complaints we hear are about are the individual inquiries lines, but I imagine on the business side they may have similar issues — especially if there's cutbacks,' Minor says. In May, the CRA said it planned to cut hundreds of positions, in addition to several other rounds of job cuts since last year, adding up to more than 3,000 job losses. This means there may be fewer staff members available to assist self-employed individuals with their returns in the days leading up to the filing deadline. 1:52 Canada Revenue Agency uses escape room to highlight tax scams The deadline normally falls on June 15, although because that date falls on a Sunday this year, the deadline for 2025 moves ahead to Monday, June 16 by the end of the day. Story continues below advertisement Technical issues on the CRA's website have also been reported this tax season, and may delay the filing process for some. Minor says he counsels all individuals, including those who are self-employed or business owners, to hire a certified accountant where possible, but if filing alone, there is help available. 'The CRA offers what it calls a 'liaison officer service.' You can request a personalized visit in person, by phone or online, and the officer will help you understand your tax obligations, explain general bookkeeping, how to avoid common errors, give an overview of online tools, and essentially answer tax-related questions,' Minor says. Given the tight timeline until the deadline, Minor says those hoping for the liaison service now are 'not likely to get it, but for those starting out a business for the first time in 2025, this could be something for the future.'
Globe and Mail
08-05-2025
- Business
- Globe and Mail
Business owners unprepared for CRA's switch to default online mail at risk of missing tax info
Businesses that aren't prepared for the Canada Revenue Agency's (CRA) transition to default online mail may miss crucial tax notices, forms and statements, tax experts say. As part of a broader effort to improve service delivery, the tax agency is moving to online mail for most business correspondence, including the notice of assessment or statement of account for current source deductions. The transition will happen in two stages. First, on May 12, the CRA will switch to online mail for all new business number (and CRA program account) registrations. Then, on June 16, the CRA will begin delivering mail online to all existing businesses that already have a My Business Account registration or that have given a representative, such as an accountant, authority to engage the CRA on their behalf through the CRA's Represent a Client platform. Existing businesses that have neither a My Business Account nor a representative will continue to receive paper mail, as will charities and some non-resident businesses. Certain correspondence, such as cheques if the business hasn't set up direct deposit, will continue to be mailed. Businesses that don't realize they're receiving tax correspondence online may risk incurring interest, penalties or other negative consequences if they don't respond, tax experts warn. Ryan Minor, director of tax for CPA Canada in Sudbury, Ont., says he's particularly concerned about businesses that might use an authorized representative but haven't registered a My Business Account. For example, businesses often hire accounting firms to perform specific tax services but typically don't have them monitor their CRA correspondence on an ongoing basis, Mr. Minor says. 'We're a little concerned about [firms] getting blamed [by clients] for missing correspondence,' Mr. Minor says. CPA Canada sent a letter to the CRA in March outlining its issues with the initiative. In response to questions from The Globe and Mail, CRA spokesperson Sylvie Branch said in an e-mail response that there are just more than 1 million businesses with a business number that don't have a My Business Account but do have an authorized representative with online access. 'The CRA is working with partners to ensure both the business and representative community are aware of the change and of the process to opt out of online mail,' Ms. Branch said. Businesses that want to continue receiving paper mail must make a request with the CRA, either by mailing in a form or by choosing the paper mail option on their My Business Account with the CRA. A business must renew its request to activate paper mail every two years to continue receiving mail that way. It must also keep its mailing address up to date with the CRA, as any undeliverable mail will result in the CRA reverting the business to online mail. In a press release about the initiative issued Wednesday, the CRA recommended that businesses prepare for the change by signing into their My Business Account to ensure their e-mail address, which the CRA will use to send notifications, is up to date. Businesses can add up to three e-mail addresses per program account in My Business Account. Joseph Devaney, a chartered professional accountant and director of tax education and development at Video Tax News in Edmonton, says he's concerned businesses might temporarily miss important notifications if, for example, they update e-mail addresses company-wide or a person associated with an e-mail address on the business's CRA account changes roles, leaves the company, or passes away. The shift to online mail should eventually result in a faster and more trackable system of communication with businesses, he says. However, in the immediate term, businesses should consider opting out of online-only mail unless they have 'a solid process in place to ensure notifications aren't missed,' he says. 'Given the widespread issues with the CRA's processing of personal tax slips this year, many firms are nervous about relying on CRA technology for such important communications,' Mr. Devaney says. The CRA says it will make form RC681: Request to Activate Paper Mail for Business – the form to request paper mail – available May 12. The CRA recommends businesses continue to check their CRA My Business Account for correspondence while the CRA processes the form, which it expects it will complete within 30 days of receipt. Businesses that select paper mail on their My Business Account portal will have their mail delivery preference changed instantly, Ms. Branch says.
