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You asked, we answered! Here are answers to six more of the top business tax information questions

Earlier this month, we issued a tax tip answering your top seven business tax information questions. Now that the basics are covered, we can turn to more specific questions.

Question 1: Where do I find information on filing as a self-employed individual?

The 2023 filing deadline was June 15^th, 2024, but with June 15^th falling on a Saturday, returns were considered filed on time if received by June 17th. The CRA offers various resources to help you navigate your tax obligations. A few include:

• Liaison Officer service for confidential assistance to help you understand your business tax obligations
• Online tools for faster filing and refunds
• Flexible payment options, including payment arrangements and pre-authorized debit

To find more information about the resources the CRA offers to help self-employed individuals please visit: Are you self-employed? The Canada Revenue Agency can help you understand your tax obligations - Canada.ca

Question 2: How do I file GST/HST using GST/HST NETFILE?

GST/HST NETFILE allows you to file GST/HST tax returns, and eligible rebates directly to the CRA. Using GST/HST NETFILE gets you your refunds faster and can be combined with direct deposit!

Note: For GST/HST reporting periods that begin in 2024, all GST/HST registrants, except for charities and selected financial institutions, are required to file returns electronically. Please visit our GST/HST electronic filing requirements tax tip to learn more.

Before you file online make sure you:

• Have an access code. If you do not, go to Need an access code? - Canada.ca
• Use a browser which supports TLS 1.2
• Have enabled cookies and JavaScript in your browser
• Have completed your return and, if applicable, rebate information in Canadian funds
• Have read the Privacy Notice Statement

GST/HST NETFILE will ask you to provide the following information:

• Your Business Number (BN)
• Your reporting period "from" and "to" dates
• Your access code

To file go to: Ready to file 

You will receive a confirmation number as proof that the CRA has received your information. Print or save the page with your confirmation number and keep it with your records. 

Question 3: What deadlines should I be aware of for small business tax filings?

Not all businesses have the same deadlines when it comes to taxes. Whether you're self-employed, a corporation, or registered for GST/HST, understanding the various deadlines is important for any business. Some examples of these different deadlines include:

• Payroll Accounts: Different types, such as monthly or quarterly remittances, have specific due dates based on past withholding amounts
• Self-Employed: For 2023 taxes, file by June 15^th, 2024, and pay any owing balance by April 30^th, 2024, with possible instalments. (This year, with June 15^th falling on a Saturday, returns were considered filed on time if received by June 17^th)
• Corporations: File T2 within six months of your tax year end, with specific due dates depending on the chosen fiscal year
• Corporation Payments: Depending on the type of corporation, monthly or quarterly instalments are required if the total of Part I, Part VI, Part VI.1, and Part XIII.1 taxes payable exceeds $3,000, with specific due dates based on the tax year
• GST/HST: Deadlines for filing and payment vary based on the chosen filing period: monthly, quarterly, or annually

Note: If your business is a Canadian-controlled private corporation, get ready for the new Canada Carbon Rebate for Small Businesses announced in Budget 2024 by filing your 2023 corporate income tax return no later than July 15, 2024. Learn more about eligibility and other details, including designated provinces at Canada Carbon Rebate for Small Businesses.

For a more detailed look at the different deadlines please visit: Businesses have different filing and payment deadlines – here is a quick reference to help you stay organized - Canada.ca

Question 4: How do I make payments to the CRA?

The CRA offers a variety of payment options for businesses. These may vary depending on the type of payment you are making; in most cases we offer options to: 

Pay online 

• Online banking 
• My Payment (compatible with Visa debit, Debit Mastercard, and Interac Online)
• Pre-authorized debit
• Pay by credit card, PayPal, or Interact E-Transfer or pay by a third-party service provider

Pay in person

• At your financial institution 
• Through a Canada Post outlet 

Pay by cheque

• Pay with a cheque from your Canadian bank account 

For non-residents without a Canadian Bank account payment can be made using a:

• Wire transfer
• Internationally issued credit card 

Question 5: How do I prove my business is in good standing with the CRA?

If your business is asking for a loan from the bank or considering purchasing real property, you may be asked to provide a comfort letter or a filing and balance confirmation letter. These letters are often requested by a financial institution or a lawyer to confirm that your business’s CRA program accounts are in good standing.

The request for a comfort letter must be done in writing. The business owner or authorized third party must send the written request to the nearest CRA tax services office. To find out how to request a comfort letter and what you’ll need visit Request a comfort letter.

The request for a filing and balance confirmation letter can be done through My Business Account or Represent a Client as a business owner or authorized representative. Once the online request is submitted, the downloadable letter is available through My Business Account in the “Mail” service shortly after submitting. To find out how more about the filing and balance confirmation letter visit Help with Filing and balance confirmation letter.

Question 6: What is considered a receipt?

When you purchase something for your business, you must keep a record of the expense. By ensuring that you have a record of the transaction, you are better prepared for filing your income taxes. Records of your transactions support your income and expense claims.

A receipt is an expense record that confirms that the business has sold or bought something.

For a receipt to be accepted for income tax purposes, it must have the following:

• the date of the purchase
• the name and address of the seller or supplier
• the name and address of the buyer
• the full description of the goods or services purchased or sold
• the vendor's business number if they are a GST/HST registrant

In addition, credit card statements are not generally accepted as a replacement for receipts unless they contain the above and other requested information.

For more information, go to Business records.