Taxed Over Taxes

At the beginning of the twentieth century, the United Kingdom and the United States had personal and corporate income tax laws. Canada, on the other hand, wanted to encourage immigration, and therefore offer free land and tax-free system as an incentive for people from other countries to make this their home.

Costs of participation in the First World War, however, were so great that Sir Thomas White, who was finance minister at the time, introduced a temporary "war" on income tax to pay.

However, this tax was temporary and, in fact, it has become the largest form of income for the Canadian government.

It was almost a hundred years since we started paying income tax, and yet, even though everyone knows that we are obliged to apply for your own personal 30th April each year, there are many people who do not. The consequences of missing the deadline can be substantial penalties and interest levied by the government.

Employers and investment firms must provide documentation of income tax for individuals by the end of February each year. This means that each of us has almost two full months to prepare and file your tax return to avoid penalties.

Why is it then that many left to the last minute - or past the last minute - to handle it? Some claim they are too busy - but we all have the same amount of time. Others say that they are not organized enough - but we live in a world that offers us a myriad of systems and experts to help us get organized. Many claim that they have no knowledge to prepare documents or money to hire someone to do it for them - though risking paying more than what they claim they do not already have late fees.

Well, there are things you can do right now to take the stress out of tax time:

First Write a list of all sources of income and the amount you received in the past year. Include employment, interest, rent, government and contract resources.

Second Gather all the accounts that you have the benefits that have arisen.

Third Contact the organization that requests for missing documents such as medical and dental income, pension and RSP contributions or charitable donations.

4th Organize documents so they can easily be written on the tax form, entered into a computer software package, or to submit an accountant.

5th Set a specific date to introduce yourself or meet with professionals who will prepare a form on your behalf. (The sooner the better!)

6th Make sure you have all that it is the Government before 30 April deadline. (It is better to attach an explanatory letter about the missing items, but wait for the items and miss the deadline).

7th Plan a little celebration!

This year you can take the stress out of tax time gathering documents and filling in forms early. You know you should do and putting it off will make it easier.

Why not just pretend that the deadline for application is 31 instead of March 30th April? If you do, you will relax while they are scrambling around you!