[kam]

After efiled a T2 return, my client mails in the correspondent income tax cheque & the tax summary together to C.R.A.

The postal strike is over. But is there a personalized remittance form at Profile similar to T1's T7DRA so not only to remit quicker to the bank but also get the necessary proof?

[Sujata]

kam, on 05 July 2011 - 05:37 PM, said:

After efiled a T2 return, my client mails in the correspondent income tax cheque & the tax summary together to C.R.A.

The postal strike is over. But is there a personalized remittance form at Profile similar to T1's T7DRA so not only to remit quicker to the bank but also get the necessary proof?

Wouldn't the 'My Payment' system on CRA's website be the quickest method of remittance?

[kam]

"My payment" is a viable alternative. But until it works on more than 3 banks for corporation remittances, I think a "T7DRA" form for T2 is in order.

[kam]

Sujata, on 06 July 2011 - 01:11 AM, said:

Wouldn't the 'My Payment' system on CRA's website be the quickest method of remittance?

Unfortunately it doesn't take HSBC Canada payment there yet.

Now the said Notice of Assessment shows an interest charge on "late payment" when its year-end is June 30, 2011, efiled/accepted on June 27, same-day courier in the CRA cheque on June 28 but CRA didn't post/cash it until July 7, 2011.

Is there a good chance to have it reversed?

[Jim]

If the year end is March 31 and the late charges weren't for instalments, then the interest should be reversed. If the year end is December 31, (filing date June 30) then the late charge is probably from April 1 (tax due March 31, presuming CCPC with active income) and is correct.

[samhill]

Jim, on 21 July 2011 - 07:24 AM, said:

If the year end is March 31 and the late charges weren't for instalments, then the interest should be reversed. If the year end is December 31, (filing date June 30) then the late charge is probably from April 1 (tax due March 31, presuming CCPC with active income) and is correct.

Kam has specifically mentioned that the year end in question is June 30, 2011!

Do you want to revise your reply?

[JoanTax]

samhill, on 21 July 2011 - 08:20 AM, said:

Kam has specifically mentioned that the year end in question is June 30, 2011!

Do you want to revise your reply?

If the corporation's year-end is June 30, 2011, then the interest charge has nothng at all to do with the payment made on filing, no matter when CRA cashed it, and no matter how it was sent to CRA.

In the case of a June 30, 2011 year-end, there also seems to be some magic hi-tech involved, as this corporation has been able to use its time machine to file its tax return three days into the future, on June 27, 2011.

[Jim]

Sam:

I saw that, but since the filing was before June 30, I presumed that the date referred to the Payment date or the filing date. Maybe my bad and the preparer used the magic Joan referred to.

Jim

[kam]

Jim, on 22 July 2011 - 02:42 PM, said:

Sam:

I saw that, but since the filing was before June 30, I presumed that the date referred to the Payment date or the filing date. Maybe my bad and the preparer used the magic Joan referred to.

Jim

Sorry for my mistake on its year-end date June 30, 2011. It should be "Dec.31, 2010". It is a CCPC & the income tax mentioned is on active income the first time.

[spenceh]

kam, on 22 July 2011 - 01:15 PM, said:

Sorry for my mistake on its year-end date June 30, 2011. It should be "Dec.31, 2010". It is a CCPC & the income tax mentioned is on active income the first time.

Corporate taxes are due three months after your year end even though the tax return is not due until six months after your year end.

Likewise, proprietors and business partner have an April 30th due date for their taxes but the tax return due date is June 15th.