Filing your return

Getting started

Gather all the documents needed to complete your return. This includes your information slips (such as T3, T4, T4A, and T5 slips) and receipts for any deductions or credits you plan to claim. You can file a paper return, or use EFILE.

Your EFILE service provider can prepare your return for you, or you can prepare your return yourself for an EFILE service provider who accepts client-prepared returns. In either case, remember to take your personal label with you and show all of your documents to the EFILE service provider.

As you prepare your return, when you come to a line that applies to you, you can look it up in this guide, or see the back of your information slips for more instructions.

If you are filing a paper return, mail or deliver it in the envelope included in the forms book. Use your mail-in label if you have one, and make note of the address for future reference. If you are preparing other people's returns, mail or deliver each person's return in a separate envelope.

Note
If you have a farming business and you are participating in the net income stabilization account (NISA) program, use the envelope contained in the guide called Farming Income and NISA.

What date is your 1999 return due?

Generally, your 1999 return has to be filed on or before April 30, 2000.

Note
If you file your return after April 30, 2000, your goods and services tax/harmonized sales tax (GST/HST) credit and Canada Child Tax Benefit payments may be delayed.

Self-employed persons - If you or your spouse carried on a business in 1999 (other than a business whose expenditures are primarily in connection with a tax shelter) your 1999 return has to be filed on or before June 15, 2000. However, if you have a balance owing for 1999, you still have to pay it on or before April 30, 2000. Send your payment to your tax centre with a note explaining how the payment is to be applied. Do not attach a copy of your return to your payment, unless you are filing that return.

Deceased persons - As the legal representative (executor or administrator) of the estate of an individual who died in 1999 or before May 1, 2000 (June 16, 2000, for a self-employed individual or that individual's spouse) you may have to file a 1999 return for that individual (see "Do you have to file a return?" on page 6). If so, the 1999 return for the deceased individual (and for the individual's spouse) has to be filed on or before whichever of the following two dates is later:

• April 30, 2000, for most individuals (June 15, 2000, for a self-employed individual or the individual's spouse); or
• six months after the individual's date of death.

For details about your filing requirements and options, get the guide called Preparing Returns for Deceased Persons.

Note
If you received income in 1999 for a person who died in 1998 or earlier, do not file a 1999 return for that income on behalf of that person. However, you may have to file a T3 Trust Income Tax and Information Return for the estate.

What penalties and interest do we charge?

Penalties

If you owe tax for 1999, and do not file your 1999 return within the dates we specify under "What date is your 1999 return due?" on page 7, we will charge you a late-filing penalty. The penalty is 5% of your balance owing for 1999, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. Your late-filing penalty may be higher if we charged you a late-filing penalty on a return for any of the three previous years.

Tax Tip
Even if you cannot pay the full amount you owe on or before April 30, 2000, you can avoid the late-filing penalty by filing your return on time.

We may waive this penalty (as well as any interest that may apply, as discussed in the next section) if you file your return late because of circumstances beyond your control. If this happens, include a letter with your return giving the reasons why you filed your return late. For details, get Information Circular 92-2, Guidelines for the Cancellation and Waiver of Interest and Penalties.

If you fail to report an amount on your return, you may have to pay a penalty. If you do this more than once within a four-year period, you may have to pay another penalty.

Interest

If you have a balance owing for 1999, we charge compound daily interest starting May 1, 2000, on any unpaid taxes owing for 1999. This includes any balance owing if we reassess your return. In addition, we will charge you interest on any penalty you have to pay, starting the day after your return is due.

When will we pay interest?

We will pay you compound daily interest on your 1999 tax refund, starting on whichever of the following three dates is latest:

• June 15, 2000;
• the 46th day after you file your return; or
• the day after you overpaid your taxes.

What do you include with your return and what records do you keep?

If you are filing a paper return, include one copy of each of your information slips. Your return, the guide explanations, the forms, or the schedules will tell you when to attach other supporting documents, such as certificates, forms, schedules, or official receipts. If you are using EFILE, you have to show your EFILE service provider all of your supporting documents.

If you make a claim without the required receipt, certificate, schedule, or form, we may disallow your claim. It could also delay the processing of your return.

Even if you do not have to attach certain supporting documents to your return, or if you are using EFILE, keep them in case we select your return for review. Generally, you should keep your supporting documents for six years.

You should also keep a copy of your 1999 return, the related Notice of Assessment, and any Notice of Reassessment. These can help you complete your 2000 return. For example, your notice for 1999 will tell you:

• your 2000 RRSP deduction limit;
• your unused RRSP contributions for 2000;
• your non-capital loss carry-forward balance; and
• your tuition and education amounts carry-forward balance. For details, see line 323.

What if you are missing information?

If you have to file a 1999 return, as explained on page 6, be sure to file it on time (see page 7) even if some slips or receipts are missing. If you know that you will not be able to get a slip by the due date, attach to your paper return a note stating which slips are missing, the payer's name and address, and what you are doing to get the slips. To calculate the income to report, and any related deductions and credits you can claim, use any stubs you may have and attach them to your paper return.