By Susan Ward. Small Business: Canada Expert
Susan Ward is a business writer and experienced business person; she and her partner run Cypress Technologies, an IT consulting business, providing services such as software and database development.
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Question: What are my options for filing income tax in Canada?
With the advent of online tax filing, filing income tax in Canada is easier than it's ever been.
- You can still file a Canadian income tax paper return if you are filing a T1 Tax Return (i.e. non-corporate tax return) - but this will slow down your return assessment process and delay your tax refund if you're expecting one. (See How Long Does a Tax Refund Take? )
If you are filing income tax in Canada by mailing in a paper tax return, you should send it to the tax centre in your region, or, if you are a non-resident individual, to the International Tax Centre in Ottawa. Where to send your T1 Return provides the mailing addresses of the various tax centres.
People filing corporate tax returns (T2 corporate tax
returns) have the same options for filing income tax in Canada. However, Canadian tax filing online is becoming mandatory for more corporations every year.
Currently, filing Canadian taxes online is mandatory for all corporations with annual gross revenue of more than $1 million "except for insurance corporations, non-resident corporations, corporations reporting in functional currency and corporations that are exempt from tax payable under section 149 of the Income Tax Act" (Canada Revenue Agency).
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If the corporation is required to file Canadian taxes online and doesn't, there are fines for non-compliance. See the Canada Revenue Agency's Mandatory Internet Filing for T2 Corporation Tax Returns .
If you are filing a T2 Corporate Tax Return for a resident corporation, the mailing location for filing income tax in Canada depends on where the resident corporation is located. The Canada Revenue Agency's Where to send your corporation income tax (T2) return provides a list of mailing addresses for the different regions and tax centres.
The same page also provides the mailing address of the International Tax Services Office in Ottawa, for filing paper returns for non-resident corporations.
Read more about Canadian tax filing online for both individuals and corporations in Can I File Canadian Taxes Online .