As we enter the month of March, tax time is fast approaching. We wanted to share some timely information to assist you and/or your accountant in the preparation of your taxes.
Important dates:
April 30, 2021 – last day to file your 2020 tax return without penalty.
June 15, 2021 – last day to file your 2020 tax return without penalty if you are self-employed. This means you are not liable for the late-filing penalty, but CRA will begin assessing interest on any unpaid amounts owing for the tax year starting May 1st.
RBC Dominion Securities (RBC DS) issues several tax slips and supporting documents to assist you in preparing your tax return. For some of these documents we rely on information provided by third parties. The CRA reporting deadline for issuers to provide their tax information to financial intermediaries like RBC DS is March 31. Some external issuers may mail tax slips directly to you. It is important to ensure you have all the your documents before you file your tax return. Please review the two checklists within the cover letter of your T5 tax package that you should be receiving in early March:
- Outstanding tax documents you may receive from our firm, and
- Outstanding tax documents you may receive from third parties
The 2020 tax reporting guide is a great resource outlining helpful information and relevant dates for the delivery of your tax documents and information.
You may have elected to receive your tax documents via e-delivery. Therefore, please be reminded that you will not receive your tax package and slips in the mail. Instead, you will find your tax package in your RBC Wealth Management online access by selecting the “Documents” tab on the left side of the page.
As always, we are here to help you and your accountants with your filing. Please contact our office so we can support you with any questions or documentation you require.
Some upcoming changes for Business owners and trust accounts
For business owners, Canada Revenue Agency (CRA) recently introduced new rules requiring your financial provider to include your Tax Identification Number (TIN) when filing tax documents for your non-personal accounts. We may be reaching out to you this year if we do not have this information. You can find your BN or TN on your entity's CRA Notice of Assessment or can contact CRA at 1-800-959-5525.
The Canadian government is enhancing trust reporting requirements beginning in 2021. Proposed measures will increase the amount of information that is required when a trustee files a T3 return, now requiring the identity and specific information for each person who is a settlor, trustee and beneficiary of a trust. Not doing so can result in a penalty that could be significant. Financial institutions like RBC will be required by the CRA to collect tax identification numbers for trust accounts, not doing so can also result in penalties from CRA. To learn if these new rules could apply to your trust account please refer to this article or contact our team.
Hayes Vickers Private Wealth