Are your Tax Installments Up to Date for 2021

Tis the season for your taxes to be filed. Are you ready? Did you file all your installments on time? A tax installment is a partial payment of the amount of tax you are required to pay for this tax year. Did you manage to file yours on time?

Need to File your Taxes click to contact Rebecca => 403-966-2814

You are required to pay tax installments for next year's taxes, if your net tax owing is more than $3,000 (for Quebec $1,800) for 2022 and in either 2021 or 2020.

Tax installment payments are due by the following dates (except farmers and fishers who have one due date on December 31st):

                                                                             March 15 - June 15 - September 15 - December 1

Click the link below for more information from the CRA website:

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/making-payments-individuals/paying-your-income-tax-instalments.html

Required Tax installments for individuals:

If you do not pay your tax installments on time, and the correct amount there will be penalties to pay. Interest and possible penalty charges will be applied if you do not pay the correct amount and/or file on time. If you are unsure what your installment should be and when you should file please click the link to the CRA website to find out:

https://www.canada.ca/en/revenue-agency/services/payments-cra/individual-payments/income-tax-instalments/interest-penalty-charges.html#toc0

Corporate Taxes:

For corporate taxes corporations are required to pay their taxes in installments. An installment payment is a partial payment of the total amount of tax payable for the year. The Income Tax Act requires corporations to make installment payments throughout the year. The payments can be paid either monthly or quarterly. Find out if you have to pay installments. What are your installment options? And how to calculate your installment payments. Click the link below:

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/corporation-payments/paying-instalments/instalment-requirements.html

                                                                                 Contact Rebecca C Penner Today at ==> 403-966-2814

Sales Taxes

If you own a small business in Canada, then you are required to collect sales tax from your clients and to remit that sales tax to the CRA. The easiest way to determine the rate of tax to charge to your clients, is to look at the province or territory in which the product is supplied to your customer. Each province has a sales tax but not all are the same.

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate.html

There are 3 steps to follow in regard to collecting and remitting your sales tax.

See the steps below:

Step 1: Determine if and how much you need to collect from each customer. As stated above this is determined in which province, they live in.

Step 2: Charge the correct amount where your customers are.

Step 3: Remit to the CRA

Finding a professional that can take the worry out of your hands and your tax return will be filed efficiently and effectively within the rules of the CRA. This is an important part in getting the best return you possibly can.

Please contact me for a FREE initial consultation at 403-966-2814 

As always thank you for taking the time to read my blog.

If you have any questions, please don’t hesitate to reach out.

Sincerely,

Rebecca C Penner CPA, CGA