Although April 30th of every year is the deadline for Canadians to file their tax returns (June 15th for Self-Employed taxpayers), the Canada Revenue Agency (CRA) encourages taxpayers to start working to file their tax returns earlier to prevent filing errors as a result of last-minute rushing. Additionally, the CRA also announced February 10, 2014 as the date taxpayers may begin using ‘NETFILE’ to file their tax returns online.
The experts at AG Tax have summarized the tax rates approved in 2014 (for filing 2013 tax returns) and a few relevant tax pointers to keep in mind while preparing and filing tax returns.
2014 Federal Tax Rates
- 15% on taxable income up to $43,953
- 22% on taxable income in excess of $43,954 up to $87,907
- 26% on taxable income beyond $87,907 up to $136,270; and
- 29% of taxable income on the amount above $136,270
2014 Provincial/territorial tax rates (except Quebec)
[lightTable]
|
Province/Territory |
Rate(s) |
| Newfoundland and Labrador | 7.7% on the first $34,748 of taxable income + 12.5% on the next $34,254 +13.3% on the amount over $68,508 |
| Prince Edward Island | 9.8% on the first $31,984 of taxable income + 13.8% on the next $31,985 + 16.7% on the amount over $63,969 |
| Nova Scotia | 8.79% on the first $29,590 of taxable income + 14.95% on the next $39,304 + 16.67% on the next $33,820 + 17.5% on the next $57,000 + 21% on the amount over $150,000 |
| New Brunswick | 9.68% on the first $39,305 of taxable income + 14.82% on the next $39,304 + 16.52% on the next $49,193 + 17.84% on the amount over $127,802 |
| Ontario | 5.05% on the first $40,120 of taxable income, + 9.15% on the next $40,122, + 11.16% on the next $433,848, + 13.16 % on the amount over $514,090 |
| Manitoba | 10.8% on the first $31,000 of taxable income + 12.75% on the next $36,000 +17.4% on the amount over $67,000 |
| Saskatchewan | 11% on the first $43,292 of taxable income, + 13% on the next $80,400, + 15% on the amount over $123,692 |
| Alberta | 10% of taxable income |
| British Columbia | 5.06% on the first $37,606 of taxable income, + 7.7% on the next $37,607, + 10.5% on the next $11,141, + 12.29% on the next $18,504, + 14.7% on the next $45,142, + 16.8% on the amount over $150,000 |
| Yukon | 7.04% on the first $43,953 of taxable income, + 9.68% on the next $43,954, + 11.44% on the next $48,363, + 12.76% on the amount over $136,270 |
| Northwest Territories | 5.9% on the first $39,808 of taxable income, + 8.6% on the next $39,810, + 12.2% on the next $49,823, + 14.05% on the amount over $129,441 |
| Nunavut | 4% on the first $41,909 of taxable income, + 7% on the next $41,909, + 9% on the next $52,452, + 11.5% on the amount over $136,270 |
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Consider Filing Online
Filing online is convenient, quick and easy: Taxpayers can now file their returns by using a computer, and will receive confirmation instantaneously.
Faster Refunds: Electronic returns are processed faster than paper ones, so if a taxpayer expects to receive a refund from the CRA, (s)he should consider filing online and utilizing the direct deposit option. Applying through the CRA portal assures that the refund will be deposited directly into the taxpayer’s account within as little as 8 days (if every associated mandatory document is in place).
Safety of Information: The CRA uses the most secure systems to ensure the safety of information disclosed to the CRA. It also removes the possibility of misplaced documents that occur with mailed tax returns.
No Effect on Audit: If income has been missed or an error has been made in the tax return, it could be subject to a CRA audit, regardless of whether the return has been filed online or on paper. It is a common misconception that filing online increases the chances of a tax audit.
File Early
A delay in filing tax returns may result in an additional delay of Goods & Service Tax/Harmonized Sales Tax credit, Canada child tax benefit payments, and/or old age security benefit payments. File tax returns in time to avoid penalty and interests.
Filing early provides time to look into various CRA payment options which may help clear the tax liability in case a taxpayer does not have the money to pay off their tax dues. Every individual should consult a tax professional to figure out the right payment option based on their situation.
Retain Information
Taxpayers should keep receipts and information slips for at least six years in case the CRA has concerns regarding their tax returns.
AG Tax LLP Can Help
If you have any tax-related queries, need assistance with tax planning or filing your tax returns please contact us. Our team comprises of highly experienced tax professionals with extensive knowledge of U.S. and Canadian tax laws as well as cross-border compliance
Furthermore, as a full service accounting firm, AG Tax assures complete assistance with even your most complex tax needs.
We can assist with:
- Canadian Personal and corporate tax returns
- Cross Border Taxation and Business Planning
- U.S. Personal and Corporate Taxation
- Disclosure of Foreign Assets and other information filings
- Retirement planning
- State Sales Tax & E-commerce Taxation
- Estate Planning, Inheritance tax advice
To obtain a quote or to arrange for a consultation to discuss your tax related queries, please contact us at:
- 416-238-5920 (Greater Toronto Area, ON)
- 604-538-8735 (Greater Vancouver Area, BC)
- 780-702-2732 (Greater Edmonton Area, AB)
Disclaimer: The information in this publication is accurate as of the time of its publication. AG Tax assumes no responsibility for changes to tax legislation subsequent to the publication of this document. The information provided is for general information purposes only and should not be acted upon without seeking professional advice. If you would like to engage our services, please contact our staff and obtain authorization to send our firm confidential information. A client relationship is not created by the transmission of information. A client relationship is only formed with our firm when a scope and engagement letter signed by the firm and the potential client detailing the terms of engagement is present.
