Canadian Taxation

Malaysia more progressive than Canada at tax time

Published On November 4, 2013 | By Joseph (Ken) | Government, Personal tax

need a hug?

To file or not to file a personal tax return?

“Under Budget 2014, taxpayers who are employed may no longer need to file their personal tax returns from the year of assessment 2014 onwards.”

“Under the budget proposal, employees whose total income tax payable is equal to the amount of MTDs [employee deductions] made by their employers no longer need to submit personal tax returns.

“Individuals who do not qualify for non-filing of personal tax returns include employees who change employers during the year and individuals who have non-employment income such as business income, rental income, etc during the year.

“Individuals can opt to file personal tax returns if they have additional tax reliefs which have not been accounted for in their MTDs. [employee deductions]”

Genius.  Instead of having to pay a tax preparer to file a tax return when you have only 1 (one) T4 slip, you just inform the government in writing that they should process the T4 slip as your only tax slip.

The CRA already receives a copy of all T slips filed by institutions and employers and already has a process where it matches slips with their corresponding tax return to ensure compliance.

“Individuals should prepare a tax computation to ascertain their tax positions so that they can decide whether it would be beneficial to file a personal tax return, especially if they are in a tax refund position.”

Under such a system, I would think that it would go without saying that if you want your refund in a timely fashion, do not wait for the government to assess it and send it to you.   

 

Like this Article? Share it!

About The Author

Joseph (Ken)
(Ken) is a Registered Public Accountant with over 25 years of public practice experience in the accounting profession. Ken specializes in accounting information systems, taxation and financial reporting.

Comments are closed.