Overwhelming credit card debt and other unsecured debts are really tough to handle. The interest rates are so high and they don’t stop growing if you leave them unattended to, and it can feel like you will never be able to catch up. But as bad as credit card debt is, there’s another one you really don’t want to mess with: tax debt. When you owe money to the Canada Revenue Agency (CRA), it’s a whole different game. The CRA can do things like take money right out of your paycheck or even grab some of your stuff to pay off what you owe. Yes! They have such power.

But paying taxes isn’t just about avoiding trouble. It’s actually about doing your part for all of us living here in Canada. The money we pay in taxes goes towards things we all need and use every day, like hospitals, schools, and roads. So when you pay your taxes, think of it as helping out your friends, family, and neighbors—and yourself too. It’s our way of contributing to make sure we have all the good things that make life better for everyone.

So, you need to file your taxes on time and do it with a smile. Let’s talk more about tax debt.

Avoid Late Filing 

A lot of people end up not paying their taxes or filing them late, and it’s not always because they don’t want to. Sometimes, it just feels too complicated. And to be honest, tax isn’t exactly exciting, so it’s easy to keep putting it off until suddenly, the deadline is right beside you.

Then there are Canadians who might be worried about paying because they think they’ll owe a lot of money. So, they wait, hoping somehow it’ll work out later. But this just makes things worse because if you miss the deadline, you will pay late fees.

Some Canadians might feel like they don’t really see where the tax money goes, so they’re less motivated to pay. They don’t see the direct benefits, or they see the government wasting money, and it makes them think twice about handing over their hard-earned money.

All these reasons make sense on a personal level, but it still doesn’t change the fact that you need to pay your tax.

When you file your taxes on time, you won’t have the CRA following up or needing to explain why you’re late, which can be a big relief. Also, if you’re due for a tax refund, filing on time means you get your money back sooner. 

2024 Tax Filing Deadline and How to File 

The deadlines for filing your taxes can vary depending on your situation. Generally, for most individuals, the tax filing deadline is April 30. If this date falls on a weekend, it’s extended to the next business day. But for this year, it falls on a Tuesday. If you are self-employed, the deadline to file is June 15, but any taxes owed must still be paid by April 30 to avoid interest charges.

Corporations have to file their taxes six months after the end of their fiscal year. The specific date depends on the corporation’s year-end. For example, if a corporation’s fiscal year ends on December 31, the tax filing deadline would be June 30 of the following year.

To file your taxes in Canada, you have a few options:

1. Paper Filing: You can fill out a paper return and mail it to the appropriate tax center.
2. Online Filing: There are free and paid versions of CRA-certified tax software available on CRA’s website. If you don’t want to use the software, create an account on the CRA website and follow the prompts.
3. Using a Tax Professional: If you find tax filing complicated, it’s a good idea to use a tax professional.

Bottom Line

It’s not easy to let go of a portion of your money. It’s not easy working several hours or shift everyday and then having to willingly give out a part of it for tax purposes. However, it’s an obligation that you should be committed to fulfilling. Like we have earlier said, your tax is being used for the development and sustenance of our dear nation. To avoid the consequences that follows late filing or punishment from the CRA, kindly file your tax.

Some Canadians find it hard to file their taxes because they have other debt obligations. There’s credit card debt that is high as a tall palm tree, there is still payday loan, mortgage, and student loans. Now, how easy would it be to still file tax? But there’s what you can do.

If you get your unsecured debts reduced, you will have enough room to pay your tax. You can speak with one of our debt experts at EmpireOne Credit to get assistance. Your debt can be reduced by up to 80%, and interest will stop immediately. Call us at (416) 900-2324 to schedule a free consultation with us. Being debt-free feels good!