Canadian Taxes Fast Facts for every Taxpayer
Putting up your business operations in Canada require a basic understanding of taxes in the region. Otherwise, you will have difficulty in complying with your obligations. Filing taxes the right way will also be more challenging if you do not quite understand tax compliance laws and standards in Canada.At this point, you should ask yourself “how much do I really know about Canadian taxes”? Read on for more information:
Deadline of filing GST/HST Returns
As a corporate taxpayer, you have the option to file and pay your tax obligations on a monthly or quarterly basis. Either way, the deadline set for filing the return is one month after your reporting period.
Making a GST/HST payment
Check your net tax to determine if it yields a positive amount. A positive amount means you have to make a payment. For corporate taxpayers who are making payments in behalf of their businesses, it is best to make final payments within the same month that their tax returns were filed.
Claiming GST/HST refunds
When you check your net tax and discovers that it yields a negative amount, that means you can claim a tax refund. In most cases, tax refunds are deposited directly to your bank account. However, if you are not yet enrolled in a direct deposit arrangement with the tax office, you should sign up for it online to keep the tax refund process simple.
Status of previously filed GST.HST returns
If you have filed your returns and made your final tax payments and would like to know the status of your taxes, you can do so through the My Business Account. Be sure you are registered online to view your tax updates in real time.
Incurred interest on overdue taxes
Like in most countries, Canada also imposes tax penalties. One of the more common reasons behind incurred interest on your most current tax bill are overdue taxes. If you fail to file your returns and make the necessary payments on time, you will like be charged with a tax penalty. The amount set for the penalty will depend on the size and nature of your business, among many other factors.
Being familiar with the taxation laws in the country where you are reporting for tax is necessary in ensuring strict tax compliance. Otherwise, you might end up paying for more than what is due. Or worse, you might get in trouble with the tax office in the long run.
If you need help in working out your taxes in Canada, you may contact our professional advisers at D&V Philippines.