Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues: deadline to file T1 on timely basis given both employment and business income
Position: effective filing deadline is June 15
Reasons: 150(1)(d)(ii) determines filing deadline
981183
XXXXXXXXXX N. Graham
(613) 957-8953
August 11, 1998
Dear XXXXXXXXXX:
We are writing in response to your May 4, 1998, letter regarding the deadline by which you are required to file a personal income tax return without incurring a late filing penalty.
The situation you described involves an actual transaction involving you as the taxpayer; consequently, your question should be directed to your local Tax Services Office that has the responsibility for determining the tax consequences of completed transactions and their implications to specific taxpayers. Although we are unable to provide any opinion in respect of the specific matters described in your letter, we have set out some general comments that may be of assistance.
Personal income tax returns are due on April 30 of the year following the year for which the tax return is filed. For example, 1997 personal income tax returns were due April 30, 1998. Late filed returns are subject to late filing penalties of 5% of the unpaid taxes plus 1% per month for each additional complete month the return is late, to a maximum of 12 months or a total of 17% of the unpaid tax.
An exception to this rule is provided when you or your spouse were carrying on a business in 1997. It is possible to carry on a business and at the same time be in receipt of other forms of income, such as employment or scholarship income. In these circumstances, a personal income tax return is due June 15 of the following year, or June 15, 1998 in the example provided. Taxes are still due on April 30, and interest will be charged on unpaid taxes from this date. A late filing penalty will not apply unless the June 15 deadline is not met.
We trust that these comments will be of assistance.
Yours truly,
Roberta Albert, CA
for Director
Business and Publications Division
Income Tax Rulings and
Interpretations Directorate
Policy and Legislation Branch
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