If you are confused about when to file and pay your taxes you aren’t alone. And taxes don’t get easier to pay when they are delayed and allowed to accumulate.
The Federal Government provided extensions for many of the tax filing and payment deadlines applicable to individuals and corporations, and if you are confused about when to file and pay your taxes you aren’t alone.
Our firm has summarized the new filing and payment deadlines for corporations and individuals, as follows:
Federal Goods and Services Tax (GST) Remittances
Manitoba Retail Sales Tax (RST) Remittances
Manitoba Health and Post-Secondary Education Tax Levy
Should you defer your tax payments to preserve cash?
Taxes don’t get easier to pay when they are delayed and allowed to accumulate.
Individuals and corporations that defer tax payments until June 30 or September 1 need to prepare themselves for a potentially large, lump sum payment after taking a "payment vacation".
Don’t put yourself in a position where three months from now you’re completely unprepared to pay your tax liabilities.
What we recommend you do instead
If you are financially able, we recommend that you make your tax payments according to your pre-existing payment deadlines. By doing this you will avoid a large lump-sum tax liability at a future date down the road.
If you choose, you can opt to make payments according to the extended deadlines listed above. We recommend setting aside the money for these tax payments (perhaps in a bank account separate from where you pay your operating expenses) to ensure the money is available when its time to remit.
Use your tax money for working capital or personal expenses only as a last resort.