There are just four days left until April 30, the tax filing deadline for most Canadians. As of last week, the Canada Revenue Agency reports that it has already processed and assessed 13.1 million tax returns, 86% of them having been filed electronically. Of those returns, just 13% had a balance owing, 20% were nil returns and the remaining 67% received a refund averaging $1,585.
But what if you don’t actually owe any taxes this year – do you still have to file a return?
Under the Income Tax Act, an individual is required to file an income tax return for a year in which they have tax payable. This holds even if taxes withheld at source, such as by your employer through payroll, exceed the amount of tax actually payable.
You must also file if you are electing to split your pension income with your spouse or partner, you disposed of capital property such as real estate or shares in 2012 or you received a capital gains distribution from a mutual fund. In addition, if you have to repay part of your Old Age Security or Employment Insurance benefits or you have outstanding amounts owing on RRSP withdrawals you made under either the Home Buyers’ Plan or the Lifelong Learning Plan, you must file a return.
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