Every resident of Canada, whether an individual or corporation, must file their tax return annually. In case of individuals and sole proprietors, tax returns are due April 30th and June 15th respectively. In case of corporations, tax returns are due 6 months after the year end date. So, if a corporation has a year end on September 30th, then the corporate tax return is due Mar 31st. All GST/HST registrants whether individuals, sole proprietors or corporations, need to file GST/HST returns regularly (depending on their filing frequency which could be monthly, quarterly or annually).
So, let’s say after repeatedly missing your tax returns deadlines, CRA will send you a notice and request you to file your tax returns within 30 days of their notice. If you do not file the tax returns within the date mentioned on the notice and after repeated CRA requests, CRA will issue an arbitrary assessment and come up with a balance owing to CRA with penalties and interest charged and sometimes a huge balance owing that may shock you. CRA will still give you a final warning to file your tax returns and straighten out your taxes.
All you should do is file your tax returns, claim all your credits, deductions and expenses and report your income. In most scenarios, the balance owing to the CRA will either result to $0 or reduced to a very small amount than what CRA had assessed. The time frame is very important in these circumstances, so make sure when you get a notice like this, just be calm and contact us immediately so we can file your tax returns before the CRA deadline. In cases like this, we act immediately as we know the importance of such notices and have dealt with them in numerous occasions and helped clients meet their obligations. The time limit for reassessment of corporate return is 3 years from the date of CRA arbitrary assessment. After 3 years, you cannot file and claim your expenses and may end up paying CRA what you did not owe in the first place and may potentially need to file for bankruptcy. Please contact us if you want us to file your returns on time.
Our fees are very reasonable in these circumstances, and we are unlike other firms who charge clients based on the circumstances. We will quote you a fixed fee upfront and we will start working on your file from the very first day you contact us.