If you wish to file your Canada tax return to the Canada Revenue Agency (CRA) before the deadline, you should know how to do it accurately.

It is really difficult to learn about the processing time taken by the CRA for your return because it depends on the way you file your taxes and the time when you submit your return file. If you file your return before the 15th April and you choose paper filing then you will get your return processed within four weeks. If choose TELEFILE, EFILE or NETFILE for your return, then your file will be processed within two weeks.

And, if you file your income tax return after 15th April using paper filing method, then you will have your return being processed within six months. For TELEFILE, EFILE or NETFILE return will take two weeks to get your file processed.

There are certain things you should remember while filing your Canadian taxes online. You should pay the exact amount of tax you owe. You can also benefit from certain things like HST/GST Credit or the Guaranteed Income Supplement under the Old Age Security Program.

You should not miss the deadline for paying taxes set by the CRA. The deadline for filing tax return is 30th April. Generally, Canadian individual returns for any specific year must be filed by April 30 of the subsequent year. If you file your income tax return after the deadline, then the Canada Revenue Agency will charge you a penalty and interest on your unpaid amount.

Tags : Canada Commercial Lender, Canada Credit Report, Canada Property Tax

The federal government of Canada changed the rules to make bankruptcy more expensive for many Canadians in 2009. The government has adopted an income test to determine how much a person must pay while bankrupt, and to determine how long a personal bankruptcy in Canada will last.

Under the old rules, each bankrupt was required to prove their income to their trustee each month, generally by submitting copies of their pay stubs. If their income exceeded a set amount, the bankrupt was required to pay a penalty of half of the amount they were over the limit.

Those rules still exist, but with an added twist. If on average the bankrupt’s income is more than $200 over the limit each month, the bankruptcy period is extended by an extra year, and the bankrupt is required to make surplus income payments for an additional year.

in 2009 a single person with no dependents and no unusual expenses is permitted to earn $1,870 per month, after taxes. If they earn $2,470 per month, they are $600 over the limit, so they are required to pay a surplus income penalty of $300 per month. Even worse, because their surplus income is over $200 per month, their bankruptcy will last for 21 months, as compared to a bankruptcy with no surplus income that can end in 9 months. They are required to pay the $300 penalty for 21 months, so obviously the cost of the bankruptcy is double what it was under the old rules.

The above example applies in the case of a first bankruptcy. In a second bankruptcy the bankruptcy period is automatically extended to 36 months.

It is critical that a knowledgeable bankruptcy trustee is consulted before bankruptcy is filed, to do a detailed estimate of potential surplus income. Here’s why:

A quick review may indicate that the bankrupt is expected to earn $1,000 every two weeks, or $2,000 in a typical month. Since $2,000 is only $130 above the limit of $1,870, it would appear that this person can expect to be discharged from bankruptcy in nine months. However, that may not be the case.

Twice each year a person who is paid bi-weekly will receive three pays. In those months their income is $3,000, or $1,130 over the limit. If they have two of those three-pay months during the bankruptcy, their average surplus income will be higher than $200 per month, and their bankruptcy will be extended for an extra twelve months. Obviously expert advice is required to accurately estimate the payments required in a bankruptcy in Canada, and that advice should be obtained before you decide to go bankrupt.

Tags : Canada Commercial Lender, Canada Mortgage, Canada Property