Why File a Tax return?
Tax filing deadline is April 30 for most individuals. For small business owners it is June 15, however if you owe, interest will accrue from 1 May onwards. So it makes sense to file by April 30.
Anyone receiving the GST credit or the Child Tax Benefit (CTB) should file a return by 30 April 2010 in order to continue to receive these benefits.
Seniors receiving Guaranteed Income Supplement (GIS) through Old Age Security should file on time to be sure their benefits continue.
Even if you don't earn income, you may still qualify for tax credits and deductions that result in a tax refund.
To carry forward the unused portion of your tuition or education amount, you need to file a tax return.
If you are expecting a tax refund, file your return or the Government does not pay interest. Some people say "I am receiving a refund and I don't have to file on time". What if you are wrong about the refund and you owe money instead? Expensive late filing penalties incur.
If you cannot pay your balance owing, file your return by the deadline, and save yourself the late filing penalty.
1st failure to file on time is 5% of unpaid taxes, plus 1%/month up to a maximum of 12 months from the filing due date. Subsequent failure to file on time within a 3 year period is 10% of unpaid taxes plus 2% /month for a maximum of 20 months from filing due date. CRA may also charge interest.
Remember that a tax refund is not a nice gift at the end of the year, it's just a return of your money that the Government had no right to. Don't let the government keep your hard earned money.