Tax time on the farm: key filing and payment dates you can’t miss

For many farmers, seeding season is quickly approaching and can sneak up on your farm in the blink of an eye. The same can be said about tax filing deadlines as they are just around the corner. Therefore, marking your calendar and understanding what’s due (and when) is essential to avoid late-filing penalties and interest from the Canada Revenue Agency (CRA).

Tax filing deadlines for farms

For all incorporated farms, the deadline for filing your corporate tax return is within six months of your farm’s year-end. If you anticipate that taxes will have to be paid to CRA, then the payment is due within two months of the year-end. It is important to note that if your farm is a Canadian-Controlled Private Corporation (“CCPC”), you may be eligible to pay the balance within three months of your year-end.

If your farm operates as a sole proprietorship, or reports income on a T1163 or T2042 schedule on a personal T1 tax return, you have until June 15 to file your tax return. However, that later filing deadline does not extend the time to pay. Any taxes owing must still be paid by April 30 to avoid interest and penalties. Farmers who anticipate a balance owing should plan ahead to manage cash flow and avoid surprises at tax time.

GST due dates

Due dates for GST filing and payments depend on whether you file your GST returns monthly, quarterly or yearly. Remember that GST due dates can vary depending on reporting requirements, so ensure that this reporting is not forgotten about when considering your year-end filing obligations.

After you file: CRA assessments and reassessments

Understanding the steps to be taken after you have filed your tax return is just as important. Once the CRA has reviewed your return, it will send out a Notice of Assessment (“NOA”). A NOA is the summary of the calculated amounts for your income tax return and includes a comparison between the amounts you reported versus what CRA has assessed.

In some instances, the CRA will send out a statement called a Notice of Reassessment (“NORA”) to communicate its findings if different than originally assessed. This notice may confirm if you owe additional tax, receive more of a refund, or if there are amendments to any tax return deductions or credits.

Some common reasons for reassessment include medical or donation claims that don’t meet CRA’s eligibility requirements, as well as missing or amended tax slips that show up after a return is filed. CRA does regular matching and reviews, so these items are often adjusted or denied. For that reason, it is important to keep supporting receipts for all claims made and to make sure all expected tax slips are reported.

If you disagree with the assessment, you have 90 days to file a Notice of Objection, so acting quickly matters. If the CRA reviews your return or has questions, they will usually contact you by letter or through CRA My Account. Be cautious of fraud in these situations as the CRA will never contact you by text or email asking for personal or banking information.

Staying on track

Just like good planning helps keep a farm running smoothly, good time management and sound tax advice help keep tax matters on track. If the CRA follows up after filing and you’re unsure of the next steps, contact your trusted tax advisor to ensure deadlines are met and any required documentation is properly submitted.