Blogs & Comment

Tax tip: do not forget your tax slips

‘I missed my T4 slip and did not include it when I filed,’ wrote Hanif on a QuickTax discussion board. ‘CRA adjusted for my missing T4 and I got the idea they would adjust for my T4 slip for the second time too. They did, but with a penalty of $886. They didn’t mention in the first notice of re-assessment that there will be fine.’
Hes right. As Sue Kentrecently pointed out in an advisory to her clients, Canada Revenue Agency will assign a penalty if you file a return and forget to include a tax slip for the second time within a four-year period.
The penalty from Revenue Canada for a 2nd time missed tax slip is 20% of the amount on the slip, says Ms. Kent. They will also charge you interest on the balance due, calculated from the April 30th deadline of the year the slip was applicable.
This includes those PESKY T3 slips and T5 slips, adds Ms. Kent. So, in preparation for this upcoming season, get in touch with your investment companies. And if you moved during the tax year, contact employers and other sources of tax slips to make sure they have your correct address and are going to send them. Post-secondary students especially need to be alert about this.
Note to readers:
Some readers haveposted questions about their tax situation in the comments sectionto this blog.Im not a tax expert, so I hesitate to provide advice on an individual basis.Ive started to pass on the questions to Ms. Kent of Ottawa Tax Servicesand will post her answers in the comments section where the question appears (or in a blog post). But make sure to confirm any tax comments you get through this blog (or elsewhere) with your own advisor or another source. Here is onequestion she recently answered for a reader:
Q: I have a Prolap Ear Canal which causes some balancing problems in daily walking. Would this qualify for Disabilty Tax Credit ? Your reply is appreciated
A: Canada Revenue Agency’s Disability Tax Credit (DTC) bases its approval on the effects of the impairment. What this means is: does your situation affect you in one of the categories of everyday life? The DTC category of walking may be the area that you could be eligible in. The defining statement is can [you] walk 100 meters on level ground without stopping due to pain, fatigue or lack of co-ordination and problems with balance. So, without speaking to you about the specifics of your condition, I would suggest there is a good possibility.