Feb
19

Can’t afford to pay your taxes?

It is important to always file your tax return on time, even if you cant afford to pay the taxes you owe to avoid any late-filing penalties.  After you file your tax return, CRA will send to you an assessment notice which will show the amount of taxes you owe.  After the payment deadline, interest will be charged on the balance.  Visit the CRA website for the prescribed interest rates -- http://www.cra-arc.gc.ca/tx/fq/ntrst_rts/menu-eng.html .  It is important to contact the CRA to set up a payment schedule for the taxes you owe.
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Feb
18

Beware slackers – Interests and penalties for late tax returns

Taxpayers who are late with their tax returns and who owe taxes will be charged interest and late filing penalties.  Interest is charged on the outstanding balance starting the day after the due date of the return and is compounded daily.  Interest are subject to change quarterly so make sure you check the CRA website regularly for updated rates ( http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/ntrst/menu-eng.html ). The late filing penalty is 5% of the outstanding balance, plus 1% of the outstanding balance every month that your return is late, to a maximum of 12 months.  Remember, prepare your tax returns well ahead of the due...
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Feb
17

CRA’s Online Payment Service

The Canada Revenue Agency (CRA) offers My Payment, an online payment service that allows businesses and individuals to pay their child/family benefits and income tax related payments directly from their bank accounts to the CRA.  CRA’s My Payment / Online Payment Service is available to those with online banking capabilities through:  BMO,  Scotiabank, RBC,  TD  For more information -- http://www.taxtips.ca/filing/cramypayment.htm
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Feb
16

Understanding Tax Brackets

To understand tax brackets, we must understand a few concepts: Everyone has a Federal and Provincial Personal Exemption.  This means that you can make a certain amount of income without paying any tax.  This amount may change from year to year. The Tax Bracket that you are in is not the tax rate you pay on all your income.  You pay this rate on the income that is in this tax bracket.  Therefore, you pay different tax rates on different portions of your income. The Tax Bracket that you are in is calculated by your taxable income, not your total income...
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