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The end of the month is fast approaching, which means that your information returns are coming due.
If you are the proactive type, you have likely already filed you returns and mailed the documentation to the recipient, which means you are free and clear.
However, for those of you who have not filed your information returns, you want to be sure to by February 28th, 2017, otherwise, you could be in for some hefty fines.
Information returns are tax documents, that notify the Canada Revenue Agency (CRA) of reportable transactions. Common information returns include:
- RRSP Contribution Information Return
- Pooled Registered Pension Plan Information Return
- T3, Statement of Trust Income Allocations and Designations
- T4PS, Statement of Employees Profit Sharing Plan Allocations and Payments
- T4RIF, Statement of Income from a Registered Retirement Income Fund
- T4RSP, Statement of RRSP Income
- T5007, Statement of Benefits
- T5008, Statement of Securities Transactions
- TFSA, Tax-Free Savings Account
- T4, Statement of Remuneration Paid
- T4A, Statement of Pension, Retirement, Annuity, and Other Income
- T4E, Statement of Employment Insurance and Other Benefits
- T5, Statement of Investment Income
- T5018, Statement of Contract Payments
If you fail to submit any of these information returns, along with others not mentioned above, you will incur a penalty for each slip for each day that it is late.
Furthermore, the amount you pay per return will depend on the type of return and the number of returns filed late.
The first nine returns listed above, along with other unmentioned returns, will incur the following penalties:
The remaining returns will incur a reduced penalty. This is due to an administrative policy that was put in place to increase fairness for small businesses. These penalties are as follow:
Whichever category your returns fall under, it is clear that penalties can quickly add up if your returns are filed late.
As such, it is important that your information returns be filed by February 28th. Specifically, they must be received by the CRA or postmarked for the 28th of February, otherwise penalties can be assessed immediately following the due date.
For more information on information slips, and the applicable penalties, visit the CRA website.
