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ARCHIVED - General Income Tax and Benefit Guide - 2001

5000-G Rev. 01

Getting started

Gather all the documents needed to complete your return. This includes your information slips (such as T3, T4, T4A, and T5 slips) and receipts for any deductions or credits you plan to claim. You can file a paper return, or you can file electronically (see page 9). No matter how you file your return, see "What do you include with your return and what records do you keep?" on page 9.

As you complete your return, when you come to a line that applies to you, you can look it up in this guide, or see the back of your information slips for more instructions. If you are filing a paper return, mail or deliver it in the envelope contained in the forms book. Use your mail-in label if you have one, and make note of the address for future reference. If you are preparing other people's returns, mail or deliver each person's return in a separate envelope.

Note
If you have a farming business and you are participating in the net income stabilization account (NISA) program, use the envelope contained in the Farming Income and NISA guide.

Filing electronically

Your EFILE service provider can complete and file your return for you, or you can complete your return yourself for an EFILE service provider who files client-prepared returns.

If you complete your return using computer software, this fast, secure system lets you file it over the Internet. Visit www.netfile.gc.ca for more information.

What date is your return for 2001 due?

Generally, your return for 2001 has to be filed on or before April 30, 2002.

Note
If you file your return after April 30, 2002, your GST/HST credit, Canada Child Tax Benefit (including those from certain related provincial or territorial programs), and Old Age Security benefit payments may be delayed.

Self-employed persons - If you or your spouse or common-law partner carried on a business in 2001 (other than a business whose expenditures are primarily in connection with a tax shelter) your return for 2001 has to be filed on or before June 15, 2002. However, if you have a balance owing for 2001, you still have to pay it on or before April 30, 2002. For details of how to make your payment, see line 485.

Deceased persons - If you are the legal representative (the executor, administrator, or liquidator) of the estate of an individual who died in 2001, you may have to file a return for 2001 for that individual. Get the Preparing Returns for Deceased Persons guide for details about your filing requirements and options.

Note
If you received income in 2001 for a person who died in 2000 or earlier, do not file a return for 2001 for that income on behalf of that person. However, you may have to file a T3 Trust Income Tax and Information Return for the estate.

What penalties and interest do we charge?

Penalties

If you owe tax for 2001, and do not file your return for 2001 within the dates we specify under "What date is your return for 2001 due?" on this page, we will charge you a late-filing penalty. The penalty is 5% of your balance owing for 2001, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. Your late-filing penalty may be higher if we charged you a late-filing penalty on a return for any of the three previous years.

Tax Tip
Even if you cannot pay the full amount you owe on or before April 30, 2002, you can avoid the late-filing penalty by filing your return on time.

We may waive this penalty (as well as any interest that may apply, see below) if you file your return late because of circumstances beyond your control. If this happens, include a letter with your return (or send one to us separately) giving the reasons why you filed your return late. For details, get Information Circular 92-2, Guidelines for the Cancellation and Waiver of Interest and Penalties.

If you fail to report an amount on your return for 2001, you may have to pay a penalty. If you also failed to report an amount on any of your returns for 1998, 1999, or 2000, you may have to pay another penalty. However, if you tell us about an amount you failed to report, we may waive these penalties. See "What is a voluntary disclosure?".

Interest

If you have a balance owing for 2001, we charge compound daily interest starting May 1, 2002, on any unpaid amounts owing for 2001. This includes any balance owing if we reassess your return. In addition, we will charge you interest on the penalties indicated in the previous section, starting the day after your return is due.

What do you include with your return and what records do you keep?

If you are filing a paper return, include one copy of each of your information slips. Your return, the guide explanations, the forms, or the schedules will tell you when to attach other supporting documents, such as certificates, forms, schedules, or official receipts. If you are using EFILE, take your label sheet and all of your supporting documents (such as your information slips, receipts, Notice of Assessment from last year, and statement of instalments paid) to your EFILE service provider.

If you make a claim without the required receipt, certificate, schedule, or form, we may disallow your claim. It could also delay the processing of your return.

Even if you do not have to attach certain supporting documents to your return, or if you are filing your return electronically (see earlier on this page) keep them in case we select your return for review. Generally, you should keep your supporting documents for six years.

You should also keep a copy of your return for 2001, the related Notice of Assessment, and any Notice of Reassessment. These can help you complete your return for 2002. For example, your notice for 2001 will tell you:

• your RRSP deduction limit for 2002;
• your unused RRSP contributions for 2002;
• your capital and non-capital loss balances; and
• your tuition and education amounts carry-forward balance (see line 323).

What if you are missing information?

If you have to file a return for 2001, make sure you file it on time even if some slips or receipts are missing. If you know that you will not be able to get a slip by the due date, attach to your paper return a note stating the payer's name and address, the type of income involved, and what you are doing to get the slip. To calculate the income to report, and any related deductions and credits you can claim, use any stubs you may have and attach them to your paper return.

Date modified:

2002-08-13