very small business on the side... deadline june 15?

[cookiecrumbs]

I have a very small business on the side, registered a business name. Are my taxes due June 15? I think I owe this year.

[Ryan26]

You're tax return is due June 15th but the catch is that if you owe money it has to be paid by May 1. So you better do a quick estimate of what you owe and mail in an installment payment.

http://www.cra-arc.gc.ca/tax/individuals/topics/all-dates/forms-e.html

I believe the penalty if you don't fully pay by May 1 is 5% of the balance owing plus 1% for each month you're late.

[cookiecrumbs]

That's what I thought... my friend said that his accountant told him otherwise. Thanks!

[Kickus_assius]

Yes, if you have a balance owing, it must be paid by May 1st regardless of the company's actual year end.

[Barry]

The penalty is based on the amount of tax unpaid as of the file due date (June 15).

Interest however begins to accrue on May 1 and continues until you pay any balance owing in full.

[chead]

Can someone comment on contractors for the 2005 tax year. My accountant who has been doing this work for many years and files all levels of tax returns, informed me that for contractors(sole proprietorships) you don't have to file until June 15th and also you won't be penalized even if you owe.

Can someone comment with the facts on this. I am worried my accountant may be wrong here.

Another point is, I can't really see people not owing in to the gov't money if you are a contractor or your own business. Unless you are paying quarterly. It seems that everyone would be owing, because no one is taking taxes out from your money, except yourself. So not having to file until June 15th makes no sense to me.