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Tax Alerts

Most Canadians live their lives with only very infrequent contact with the tax authorities and are generally happy to keep it that way. Sometime between mid-February and the end of April 2025 the majority of Canadian taxpayers will file a return for 2024 with the Canada Revenue Agency. Once that return is processed, the CRA will issue a Notice of Assessment. Most taxpayers will then receive a tax refund, usually by direct deposit to their bank account, while in a minority of cases the taxpayer will have to pay a tax amount owing on or before April 30, 2025.


When Canadians gather together the information slips, receipts, and other documents needed to prepare and file their annual income tax return, their biggest concern is likely whether completing that return will result in the need to pay a tax amount owing. Taxpayers who are recipients of Old Age Security (OAS) benefits share that concern, of course, but they can face an additional unpleasant result when completing their tax return – finding out that they are subject to the OAS recovery tax, or clawback.


Most taxpayers sit down to do their annual tax return (or wait to hear from their tax return preparer) with some degree of anxiety. In most cases taxpayers don’t know, until their return is completed, what the “bottom line” will be, and it’s usually a case of hoping for the best and fearing the worst.


Notwithstanding the considerable complexity of the Canadian income tax system, there is one rule which applies to every individual taxpayer living in Canada, regardless of location, income, age, or circumstances. That rule is that income tax owed for a year must be paid, in full, on or before April 30 of the following year. This year, that means that individual income taxes owed for 2024 must be remitted to the Canada Revenue Agency (CRA) on or before Wednesday April 30, 2025. No exceptions and, absent extraordinary circumstances, no extensions.


Two quarterly newsletters have been added one dealing with personal issues, and one dealing with corporate issues.