Tax Day

Tax Day (Taxes Due) History

Tax Day, also known as Taxes Due, highlights the day in Canada where taxpayers finalize their income tax returns on or before the specified deadline. It’s an imperative opportunity for individuals to uphold their civic responsibility to the Canadian Revenue Agency (CRA) and contribute integral funding for public services and infrastructure. Equally noteworthy, it is a chance for taxpayers to identify potential tax deductions and credits, thus tailoring returns to best suit each individual's unique fiscal situation.

Though the history of Tax Day is not specific to Canada, the Income Tax Act regulations of 1917 clearly stipulated the need for Canadian citizens to contribute to the country's coffers. This was particularly important as Canada bore the financial burden of World War I. Subsequent laws and amendments have seen the process evolve, albeit maintaining firm the core ethos of citizens financially empowering their nation. Today, the Tax Day plays a significant role in the fiscal year of Canadians, shaping financial planning and decision-making.

In Canada, the observance of Tax Day tends to be a strictly administrative affair. There are no public ceremonies or festivities. Rather, taxpayers often fall into preparation mode well ahead of time, working with accountants or tax software to finalize returns. It is always prudent to ensure all relevant documents are in order well in advance of the CRA deadline to avoid late filing penalties. The deadline for filing taxes typically falls on April 30th, though self-employed individuals and their spouses have until June 15th to file their returns.

Facts about Tax Day

• In 2023, tax filing season is estimated to begin on Monday, January 23rd, But may be delayed by a week.
• During World War I, around 1918, the highest income tax rate in the US was over 77%.
• The power of taxing people and their property is essential to the very existence of government - US President James Madison
• In the 1930s, a high-profile tax evasion case involved a stockbroker, James Richardson, who was sentenced to four years in prison. This case helped spur changes in Canadian tax enforcement and regulation.
• Canada allows certain forms of income splitting to lower a family's tax burden. This means that a higher-earning spouse can transfer some of their income to a lower-earning spouse to bring themselves into a lower tax bracket.

In the News and Trending in Canada for Tax Day

Top things to do in Canada for Tax Day

• Be sure to mail your Tax Return before the midnight of the designated tax day.
• File for an extension before midnight, if needed.
• Take advantage of Tax Day Freebies at local restaurants.
• Take a tour of Parliament Hill in Ottawa, the political and cultural heart of the city.
• Get you taxes done at free tax clinics: The Canada Revenue Agency (CRA), non-profit organizations and some community centres often host free tax clinics where eligible individuals can have their tax returns completed.