Half Way Through the 2018 Tax Filing Season!
Better late than never. Try Googling that phrase and it is interesting to learn where the phrase orientated from. For those of you that have already been in with your 2018 tax documents and have filed, thank you for your business. This tax season, Smart & Associates, is fortunate to have Charlene H. Smart CPA, CGA’ Jenny McGovern CPA, CGA and Michelle Renault here to serve you. Below are some important dates to keep in mind for these last few weeks of the 2018 tax season.
April 15th, 2019
Deadline to bring in your personal tax file to the office with assurance that filing can be done by April 30th. Files will be accepted after this date, with the understanding that files in que will have priority.
April 30, 2019
Due date for the 2018 income tax return due and payment of taxes owing
June 15, 2019
Filing due date for 2018 income tax return due for self-employed individuals
Important Reviews that CRA can initiate
After filing your personal tax returns there are times where the Canada Revenue Agency “CRA” want to “review” your return. Why would CRA do this? Well, as the Canadian tax system is based on self-assessment and as more than 80% of Canadian taxpayers now file their personal tax returns electronically vs. a paper return with the supporting documentation attached to the paper return, CRA likes to randomly follow up on Canadian taxpayers to ensure compliance. Below are the four basic types of reviews that CRA performs:
Pre-assessment Review Program
The reviews are conducted before a Notice of Assessment is issued and the peak period for this program is February to July.
Processing Review Program
Similar to the above Pre-assessment Review program, but these reviews take place after the Notice of Assessment has been issued. The peak period for this program is August to December
This program takes place after the Notice of Assessment has been issued and “matches” information filed by the taxpayer to information filed to CRA by third-party sources, such as employers or financial intuitions.
Special Assessments Program
The reviews under a special assessment program can take place before or after a Notice of Assessment has been issued. This program is a more in-depth review of the income tax return and can take place after any of the above reviews has been completed. This more in-depth review looks to identify and gather information on trends and situations in areas of non-compliance that may represent a risk to the self-assessment system.