Regardless of the reason, if you have unreported T-slip income of $500 or more from any T-slips in your current year tax return, don’t wait for CRA to catch it.
If you have unreported t-slip income in your current year return and also unreported t-slip income in any of the three years prior, you are subject to a penalty equal to the lesser of:
It can be difficult to keep track of all T-slips, especially since they can be issued at various times throughout the year, and you may receive many different slips based on the number and type and investments you have. The number of T-slips you receive each year may also be different. However, Canada Revenue Agency receives copies of all T-slips issued to you, and verifies all income reported on the tax return to that on all of the T-slips, through a matching system.
Your due diligence is your best defense in this situation. For example, if you are unsure whether you have received all of your T-slips for the year, make sure you follow-up with relevant individuals/institutions (e.g. accountant, banks, investment advisor, employers, etc.), or call Canada Revenue Agency to verify which T-slips they have received.
Thanks to Johnny Kwong of KWB Chartered Accountants for providing this content.
Johnny Kwong, CPA
Johnny received his Bachelor of Commerce Degree in 2011 from Athabasca University. In April of 2013, he joined the KWB team, initiated his articling hours, and began pursuing a CPA designation. Despite each CPA PEP module becoming increasingly arduous, there was a light at the end of the tunnel. In May of 2016, Johnny was successful in writing the Common Final Exam. Six months later, in December 2016, Johnny was admitted as a CPA member. He is currently continuing his professional development as a Senior Staff Accountant at KWB.
On a personal note, Johnny became a father in January 2016 to a beautiful baby girl. He and his wife are enjoying every new experience that comes with becoming a parent, especially the monumental steps that their little girl is taking to becoming a unique individual…oh, and the lack of sleep. Johnny also enjoys watching movies, going for long walks and attempting to find a spare moment for a date night with his wife – which have been few and far between, despite KWB’s best efforts.
Johnny's Contact Information
Other Posts by Johnny
Heartbleed & CRA’s Deadline For 2013
As you may have heard, Canada Revenue Agency (CRA) extended the 2013 personal tax return deadline to May 5th, 2014.
This was due to a security issue, known as the Heartbleed bug vulnerability. This vulnerability affected how usernames and passwords were encrypted when logging into “secure” websites. Thus, allowing hackers the potential to steal private
Taxable Benefits For The Personal Use of Company Aircraft
A corporate aircraft that is owned or leased primarily for business purposes, but is used for personal purposes (i.e. flight to transport employees or shareholders to a vacation destination) will be considered a taxable benefit to that employee or shareholder.
The value of the benefit is the cost of a regular first class airfare
CRA Requirements for Keeping Financial Information
You are required by law to keep records if one or more of the following situations apply:
You operate a business in Canada
You have to file an income tax return (i.e. corporate or personal)
You have to file a GST return
You filed for a GST rebate
You have a trust
Supporting Documents for a Charitable Donation
When you make a charitable donation, one of the key benefits is the donation tax credit you receive on your tax return.
In order to be able to claim a charitable donation and get a credit, Canada Revenue Agency (CRA) requires that individuals keep supporting documents and proof of payment (i.e. cancelled cheques, pledge
Home Buyers Plan
The Home Buyers Plan (HBP) is a program that allows you to withdraw up to $25,000, per person from each of your RRSP accounts in a calendar year to buy, or build, a qualifying home.
To be eligible for the Home Buyers Plan, the following must be met:
You must be considered a first-time
Canada Child Benefit
Beginning July 2016, the Liberal government combined the Canada Child Tax Benefit, National Child Benefit Supplement and the Universal Child Care Benefit into the Canada Child Benefit.
Under the new Canada Child Benefit, families with children under the age of 18 will be eligible for a maximum annual benefit of $6,400 ($533 per month) per
What is the value of deferring my OAS benefits, sometimes also called OAS pension, to a future year?
There are several reasons why you might want to defer your OAS benefits, such as:
1) Based on current and future sources of income you may be able to keep thousands more.
2) You’re planning to work past 65
Changes to the Eligible Capital Property Rules Effective January 1, 2017
Eligible capital property (ECP) includes items such as goodwill, patents, trademarks, customer lists and other intangibles with no fixed lifespan.
As of January 1, 2017, the new rules for eligible capital property will come into effect and will have a significant impact on tax deferral opportunities for companies that dispose of eligible capital property.
Child Rearing Provision
If you left the work force or reduced your working hours to be the primary caregiver for your children, it will likely be to your benefit to apply for the CPP child rearing provision when applying for CPP benefits.
To apply for the CPP child rearing provision you would complete section 11A in the application