Struggling with finishing your income tax return? Rushing towards the April 30th cut-off? Well Canadians, there has been a human error – or some may see it as a human hero – which has extended the personal tax return filing deadline.
An incorrect message was sent to tax preparers on April 24th by the Canada Revenue Agency stating that the 2014 personal tax filing deadline has been extended to May 5th, 2015. The following Monday there was another statement explaining that there was a discrepancy with the date information and that the deadline was to remain as of April 30th. Yet, the confusion triggered Canadian’s to adjust their timelines based on the May 5th, 2015 deadline. Minister of National Revenue, Kerry-Lynne Findlay, is ensuring that Canadians will not be penalized for the CRA’s mistake and that the May 5th deadline is now the new closing date. The error was deemed unacceptable by Findlay, and the confusion for tax preparers will be accounted for with the five day extension.
It seems like deja vu from last year – when the Heartbleed Bug shutdown electronic systems for five days resulting in an extended deadline. Is there an anti-tax Robin Hood who is giving Canadian’s some extra time? of course that is not the case, however, is this blunder truly a blessing? or are there significant ramifications that follow this human error? At a quick glance, this extra time to file and avoid late penalties appears positive. However, the economic costs to the Canadian Government due to this human error will eventually be endured by tax payers, consequentially having them bear the costs.
Essentially, this mistake heavily affects the Government. Tossing the blatant embarrassment aside, the interest that the Government would have received
through Canadian procrastinators are now non-existent; the five extra days for Canadians has considerably impacted any late penalties that may have occurred past April 30th. Filing taxes late is never an
ideal situation, but it can happen in some cases. To learn about what you can do in these situations, take a look at this article on solutions for past due tax returns
As Canadians take a deep breath, the stress of taxes feels a little less rushed. Tax season generally does not bring out the best in everyone. However, financial planning seems to be the most advantageous way to start early, start smart, and avoid these strenuous situations; learn more on financial planning and how it can benefit you in the long-term.
Taxes are not considered a simple task – there is an abundance of things to remember that result in sweat and stress. Perhaps this is grounds as to why Canadians procrastinate with filing their taxes. However, having something as simple as a personal tax return checklist can make filing your taxes a lot easier. Luckily for you, you can check-off what you need with this 2014 Personal Tax Return (T1) Checklist
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.