How to File Taxes in Canada

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The government of Canada mandates every worker in the country to pay income tax yearly which tantamount to 15% of the worker’s gross pay. This would imply that the higher the individual earns, the higher is his income tax. The taxation year in Canada runs from January to December but working individuals must file an income tax return by 30th day of April each year.

Trivia: Do you know that Canada had not imposed tax system until the World War I. The government imposed a tax-free system to invite more immigrants to Canada.

canada_taxWhy Canadians Should Pay Taxes?
There are many purposes of Canadian tax. Like in any other country, taxes are utilized for different government programs, projects and services. For instance, the public transportation which provides safer and more economical fare to the citizens. For an individual advantage, in Canada, taxes are used as premiums for Employment Insurance and they are necessary to claim government benefits like the Guaranteed Income Supplement (Old Age Security Program).

The Process of Filing a Canadian Income Tax Return
It should be noted that self-employed and part-time workers are not exempted from paying taxes.

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Step No. 1. Secure T4 and Other Income Tax Forms. T4 is a written document that is obtainable from the employer. The T4 form summarizes the total earnings and deductions the worker gets every year. On the other hand, depending on the status of the worker’s registration in Canada, he or she may need additional forms. For example, non-residents need to fill out the 428 form, Schedule 1 Federal Tax and T1234 while for Canadian residents, the worker may only need the Schedule 1 and 428 forms. Read on more about T4 form slip here.

Step No. 2. Complete the Necessary Tax Forms. Tax forms are normally completed by the worker himself but if he finds it complicated, he can avail a tax service or hire an accountant which are searchable through Yellow Pages.

Step No. 3 Mail the Tax Forms. Ensure that the tax package (forms) is complete before sending them. Affix sufficient postage and provide an accurate mailing address. Nonetheless, to minimize environmental waste, Canadians are encouraged to file their income tax online.

What Happens if the Person Doesn’t Pay Taxes?
Expect that the Canada Revenue Agency (CRA) will send a letter to the tax payer. Be reminded that CRA won’t stop until they get the money you owed to the government. However, if the person doesn’t pay, CRA will find you and they do have the authority to freeze your bank account or garnishee your salary. That being said, there is no other way to make this correct but to pay taxes.

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To mitigate the problem, the person can contact Canada Revenue Agency to work out a suitable payment plan. CRA is not harmful and they actually willing to work with you if you honestly declare your taxes. Read further: Income tax deadline has passed, but what happens if you didn’t file a return?

Contact Details:
Mailing address:
International Tax Services Office
102A 2204 Walkley Road
Ottawa, Ontario

Telephone Numbers:
In Canada: 1-800-267-5177
Internationally: 1-613-952-3741


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