Personal Finance

Tax Filing Question

  • Last Updated:
  • May 5th, 2015 11:12 am
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Jr. Member
Dec 31, 2008
184 posts
4 upvotes
Oshawa

Tax Filing Question

I'm filing my taxes late this year (meaning, I'm behind in getting them done) and will submit them tomorrow. I owe taxes this year but need to contact RC about something before I file, and make a payment. I understand that the deadline for filing has been extended to May 5, 2015, and I plan on filing tomorrow so I'm well within the deadline. However, I was wondering about payment as it can often take 3-5 business days (in regular banking situations) for transactions to process. Will this apply in this situation or are you safe as long as the transaction shows that I paid by May 5, 2015, 11:59pm? I used this as an example to understand the payment process but plan to pay tomorrow.
Thanks.
6 replies
Jr. Member
Dec 31, 2008
184 posts
4 upvotes
Oshawa
Hello?? Anyone? There's been a lot of visits but no replies. : ( Hopefully someone who knows will chime in.
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Sep 19, 2004
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My guess it uses the TRANSACTION date, just like credit card payments

but if you're gonna contact CRA anyway, ask them and let us know their answer. Good luck
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Sr. Member
Jan 15, 2015
643 posts
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Isabella36 wrote: I understand that the deadline for filing has been extended to May 5, 2015, and I plan on filing tomorrow so I'm well within the deadline. However, I was wondering about payment as it can often take 3-5 business days (in regular banking situations) for transactions to process. Will this apply in this situation or are you safe as long as the transaction shows that I paid by May 5, 2015, 11:59pm?
Last year I filed both my brother's and my tax return using Netfile on May 5 (deadline having been extended same as this year). I paid taxes owing by electronic banking on May 5, but made sure that payment was entered before midnight EST rather than in my local PST zone just to be safe. No late filing/payment penalties were incurred.

If you are not sure of the exact amount owed and cannot get an answer from CRA in a timely fashion, you should still file before the deadline. I have found that if you underpay taxes due to an omission on your part, CRA will probably catch it and reassess you with interest charged on balance owing. In that case, it would be advisble to overpay taxes using a rough estimate. CRA should be able to catch any errors on your return based on their copies of your T4s,T5s, etc. (they get all copies that your employer or banking institution issues anyways), and give a refund for overpayment.
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Apr 12, 2005
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SAM3674 wrote: Last year I filed both my brother's and my tax return using Netfile on May 5 (deadline having been extended same as this year). I paid taxes owing by electronic banking on May 5, but made sure that payment was entered before midnight EST rather than in my local PST zone just to be safe. No late filing/payment penalties were incurred.

If you are not sure of the exact amount owed and cannot get an answer from CRA in a timely fashion, you should still file before the deadline. I have found that if you underpay taxes due to an omission on your part, CRA will probably catch it and reassess you with interest charged on balance owing. In that case, it would be advisble to overpay taxes using a rough estimate. CRA should be able to catch any errors on your return based on their copies of your T4s,T5s, etc. (they get all copies that your employer or banking institution issues anyways), and give a refund for overpayment.
I think all banks have a cut off time of 6 or 7pm for online banking transactions. I.e. transactions done after the cutoff time will be considered the next business day.
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Aug 22, 2011
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a_1_a wrote: I think all banks have a cut off time of 6 or 7pm for online banking transactions. I.e. transactions done after the cutoff time will be considered the next business day.
RBC and TD does.
Jr. Member
Dec 31, 2008
184 posts
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Oshawa
Sam3674, you are right. I called CRA and the agent told me it's the payment date that matters so if you owe taxes, and pay today, or tonight by 11:59pm (for example), than you are safe, and there is no penalty. The same principle applies if you mail in your forms. They look at the date and time that is stamped at the post office.

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