Q. What is the deadline for individuals to file their income tax returns?

A. April 30 is the deadline except those who are self-employed. To avoid penalities you must file on time even if you cannot pay the balance. Interest is charged on outstanding balances.

Q. What is a Home Buyers Plan?

A. A Home Buyers Plan (HBP) is a plan that allows you to withdraw up to $20,000 from your
RRSP tax free to purchase a home which you pay back over a 15 year period.

Q. If I am a transport employee may I deduct meals while away from home.

A. Yes, the new rates effective Oct 23, 2003 are $15 per meal up to a maximum of $45 a day for both Canadian and US prices. You also have the option of using the actual receipts. Employees may deduct 50% of either the flat rate or actual costs. You are required to fill out a TL2 form and cannot be reimbursed for your meals through your employer.

Q. Do I have to file an income tax return if I had no income?

A. If you want to receive the GST credit or the Child Tax Benefit then you are required to file an income return in order to receive those benefits. If you are married and the combined income qualifies you for the GST credit then you can file the GST credit on the spouse's return. However if you qualify to receive the Child Tax Benefit then you must file an income tax return rather than putting it on the spouses return.

Q. How do I receive the Canada Education Savings Grant (CESG)?

A. You must apply for a social insurance number for your child or children and open a Registerd Education Savings Plan (RESP). If you contribute $2,000 to an RESP for each child each year, you will receive the maximum grant of $400 per year. A 20 per cent grant is paid on the contribution amount to a maximum of $400 per year.


SELF-EMPLOYED OR BUSINESSES

Q. What is the deadline for filing my 2004 income tax return if I am self-employed?

A. To avoid penalties you must file your income tax return by June 15th, 2004, however if you have a balance owing you must make your payment by April 30, 2004.

Q. Do I have to register for HST if I am self-employed?

A. You are required to register for HST once you reach sales of $30,000 for most businesses. There are a few exceptions that require you to register even if your revenues do not exceed $30,000 such as taxi and limousine drivers. You may want to register voluntarily if you have alot of start-up costs and want to receive back some of the input tax credits that you paid on your purchases. You must stay registered for at least one year before you can cancel or unless you close your business.

Q. Can I file my HST return online?

A. You may file your return online if you have a nil return or if you are receiving a refund of $10,000 or under. All other HST returns must be filed by mail, CCRA office or at any financial institution. Payment methods are available through web banking with most financial institutions.

Q. What is the deadline for T4 slips to be mailed to employees?

A. The deadline is February 28th for both mailing the T4 slips to employees as well as filing the T4 summaries with Canada Customs and Revenue Agency.