In Canada, individuals and businesses are required to file a tax return every year with the Canada Revenue Agency (CRA) to report their income and expenses and determine how much tax they owe or are owed as a refund. The tax return includes information such as employment income, investment income, and eligible deductions and credits. The deadline for filing a tax return in Canada is usually April 30th for individuals and June 15th for self-employed individuals, but it is important to note that any taxes owed must still be paid by April 30th to avoid penalties and interest.
Taxation
Personal Tax Returns
Personal tax returns in Canada are based on a progressive tax system, where higher income earners pay a higher percentage of their income in taxes.
Self-Employed Tax Returns
Self-employed individuals in Canada must file an annual tax return reporting their business income and expenses, and may also need to make quarterly tax payments.
Corporate/Buisness Tax Returns
Corporate/business tax returns in Canada must be filed annually and report the corporation's income, deductions, and credits, with a tax rate based on the corporation's taxable income
Estate and Trust Tax Filing
Estate and trust tax returns in Canada must be filed for any estate or trust that has generated income or capital gains during the tax year, with different tax rates depending on the type of trust.
Non-Residents Tax Returns
Non-residents of Canada must file a tax return if they have earned Canadian-source income or disposed of taxable Canadian property during the tax year, with different rules and rates depending on the type of income or property.
Audit
A CRA audit is a review of a taxpayer's tax return and financial records to ensure compliance with tax laws, while a CRA review is a less comprehensive assessment of selected items on a return.