Benefits of Filing Your Income Tax on Time

Paying your taxes is your duty as a Canadian. However, some individuals may avoid paying taxes to save money. But is that a good idea? We don’t think so! Tax evasion is a crime, and the Canadian Revenue Agency (CRA) can penalize you for it.

The sooner you file your tax, the greater your refund and the less money you'll be required to pay. In addition to avoiding penalties, there are other benefits of filing early. Continue reading this article to learn all about it.

The term ‘Income tax’ written on a white envelope

Avoid Penalties

If you file your tax return late, there's a high chance the CRA will assess a penalty against you. The amount of the penalty depends on how many days are left before the end of your original due date.

Get A Bigger Refund

Filing your tax return on time can help you get a bigger refund than if you filed late or didn't file at all. If you have a few hundred dollars in tax refunds coming to you, those funds can go towards paying off credit card bills and debt repayments. If the amount is larger, consider using it for something like buying a new car or starting an emergency fund to ensure all this extra cash isn't just sitting around.

With the diminishing financial conditions in Canada, every dollar you save in tax payments can be crucial. We recommend researching tax benefits and refunds to save more money than before. However, understandably, checking every tax benefit can be a time-consuming process. Consider hiring a tax accountant if you need technical assistance.

Peace Of Mind

Filing your income tax on time is the best way to keep yourself from getting caught up in an audit. If you get audited and find that you have some money to pay back, filing early will help avoid hefty penalty payments.

Also, note that if you file late, it’s likely that the CRA will send out a letter asking for more information about their findings. It could result in an automatic audit, which can be a hassle for you and your company.

A personal tax accountant in Canada

Exceptional Tax And Accounting Services Available In Canada

If you’re looking to file income taxes in Canada and don’t know where to start, consider visiting Accounting Plus. Their personal tax accountants Canada can help you file income taxes in no time. They’ve also been providing accounting and bookkeeping services to clients in Toronto, Markham, and Richmond Hill for over twenty years.

Get in touch with them today for more details about their tax services in Canada.

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