Frequently Asked Questions – FAQs
Get answers to your tax and accounting questions. Browse our FAQs to learn more about our services, CRA requirements, and how we help clients across the Greater Toronto Area.
PERSONAL INCOME TAX RETURN
You need T4 slips, T5 slips, T3 slips, RRSP receipts, tuition slips, medical receipts (out of pocket), childcare receipts, and your last Notice of Assessment to confirm RRSP deduction limit.
The deadline is April 30 of the following year.
Yes. You should file as soon as possible. If there is an amount owing, CRA will charge penalties and interest.
Yes. To get GST credits, climate action amounts, Canada child benefits, and other credits.
Electronic filing with direct deposit may result in refunds within two weeks, but it may take longer if CRA assess late.
CRA will issue a Notice of Reassessment. You may respond with documents to support your claim.
SELF-EMPLOYED or SOLE PROPRIETOR TAX
Expenses like home office, vehicle, advertising, supplies, travel, meals, equipment, software, professional fees, etc., but not limited to these. Any expenses related to earning the self-employed income can be deductible.
The filing deadline is June 15. If any balance owing is due by April 30.
Yes. CRA requires proof of all expenses in case of an audit. Receipts should be kept for 6 years.
Yes. It is advisable to do bookkeeping for accurate books and support proper deductions and reduce audit risk.
You must register once your annual taxable revenue exceeds $30,000.
CORPORATE TAX RETURN (T2)
Yes. All corporations must file a T2 return each year, even if it is not operational.
6 months after the end of the corporation’s fiscal year. Suppose the fiscal year ends on December 31, the deadline to file is June 30 following year.
Financial statements, bank statements, payroll records, HST filings, shareholder loans, and prior tax filings.
A reduced tax rate for Canadian controlled private corporations on the first five hundred thousand dollars of active business income.
The best structure depends on income, deductions, RRSP goals, and long term planning.
GST / HST FILING
Businesses earning more than $30,000 in taxable revenue in a year.
Filing frequency depends on your revenue. Monthly, quarterly, or annually.
GST/HST paid on eligible business expenses, and you can get a refund if ITCs are more than collected GST/HST.
CRA charges penalties and interest on the amount owing. Late filing may trigger an audit by CRA.
Bookkeeping
It supports accurate tax filing, financial statement analysis, and CRA compliance.
Documents such as invoices, receipts, payroll details, bank statements, credit card statements, and loan agreements.
Yes. We help you with monthly, quarterly, and annual bookkeeping.
Yes, we help you with cloud-based bookkeeping. You can pull the report anytime to see the real-time financial situation.
CRA AUDITS & REVIEW SUPPORT
Large variance from last filing, large rental losses, large deductions, business losses, inconsistent reporting, or missing slips, etc.
CRA requires you to keep records for at least 6 years.
Respond without delay. Provide supporting documents. Seek professional support.
Yes. Self-employed taxpayers are audited frequently due to business expenses, home office, and vehicle-related deductions.
NON-RESIDENT TAX FILING & SECTION 216 RENTAL RETURN
A non-resident who earns rental income in Canada should file a section 216 return to report the rental income and expenses and pay 25% on net rental income instead of paying 25% tax on gross rent.
Mortgage interest, property taxes, management fees, repairs, maintenance, insurance, utilities, and depreciation.
If NR6 is approved by CRA, then the section 216 must be filed by June 30 of the following year. If you fail to file by June 30 of the following year, then CRA may cancel and NR6 and ask you to pay 25% withholding on gross rent.
Yes. Your agent must file the NR4 at the end of the year and give you a copy of the NR4, which will be enclosed with the section 216 return filing to claim a refund.
You should get the non-resident account by logging onto your CRA account or by calling CRA. You should remit the 25% withholding tax to CRA using the NR account. At the end of the tax year, send an NR4 proforma requesting CRA to issue NR4 slips. These slips should be enclosed with the section 216 return to claim a refund.
NON-RESIDENT TAX: NR6 ELECTION
A request to reduce withholding tax on rental income from 25% percent of gross rent to withholding based on estimated net income.
It is advisable to file an NR6 request before the first rent payment of the year or at the start of rental activity.
Yes, you need a Canadian tax resident who can act as your agent to apply for NR6 approval. Both the property owner and the Canadian agent.
What is the processing time for NR6?
NON-RESIDENT PROPERTY SALES & CERTIFICATE OF COMPLIANCE (T2062)
A certificate issued by CRA confirming that the non-resident seller has reported the sale of Canadian property and paid the tax.
Yes, if a non-resident sells real estate, the lawyer will withhold 25% of gross sales if the property is not rental or if the property is rental and no depreciation is claimed during the rental period. If the property was rental and depreciation (Capital Cost Allowance-CCA) was claimed, then the lawyer may withhold 50% of gross sale proceeds.
Within ten days of the sale or disposition. You can also file 30 days before the closing of the property to save processing time.
CRA, on average, takes 6-8 months to process the application for a certificate of compliance.
CRA charges penalties $25 per day to a maximum of $2500 plus interest.
Purchase agreement, sale agreement, lawyer statements, proof of cost, and estimated capital gains.
SECTION 217 RETURN
If a non-resident receives a Canadian source income, they may elect to file a return to pay tax on Canadian income at regular rates instead of withholding tax.
Pension income, CPP, OAS, RRIF withdrawals, and certain employment income.
The deadline to file a Section 217 return is June 30 of the following year.
If it is filed after June 30, CRA will not accept the return, and the tax withheld on NR4 will be final and non-refundable.
CANADA-WIDE SERVICE AREA
Yes. We serve clients in Alberta, British Columbia, Manitoba, Saskatchewan, Quebec, and across Canada.
Yes. We deal with non-resident tax filings for clients worldwide.
Yes. All services are available online through secure channels, and virtual meetings are scheduled to review the returns and answer the client’s questions.
