Filing dates, election windows, and planning milestones for business owners.
Last day to make RRSP contributions deductible for the prior tax year. Contributions after this date apply to the current year.
Filing deadline for most individuals and the date any balance owing is due. Interest accrues on unpaid amounts from this date.
Extended filing deadline for self-employed individuals and their spouses. Note: any balance owing is still due April 30.
Required if net tax owing exceeds $3,000 ($1,800 in Quebec) in the current year and either of the two preceding years.
Due the later of 6 months after the date of death or April 30 of the following year. All accrued gains are deemed disposed at FMV.
Filing deadline is 6 months after the corporation's tax year-end. For a December 31 year-end, the filing deadline is June 30.
Balance owing is due 2 months after year-end for most corporations. CCPCs claiming the SBD with taxable income under $500K in the prior year get an additional month (3 months total).
Monthly instalments are required if the total Part I and Part VI.1 tax payable exceeds $3,000 in both the current and prior year.
File the T2 and pay sufficient eligible or non-eligible dividends before year-end to trigger the refund of refundable dividend tax on hand. The refund is $1 for every $2.61 of eligible dividends (or $1 for every $3.33 of non-eligible dividends).
All inter vivos and testamentary trusts with a December 31 year-end must file within 90 days of year-end — March 31 for most years. Most trusts are now required to have a calendar year-end.
Tax owing by the trust is due 90 days after year-end (March 31 for calendar year-end trusts). Unlike corporations, there is no extended payment period.
Bare trusts are exempt from T3 filing for the 2024 and 2025 tax years. Starting with taxation years ending December 31, 2026, certain bare trusts will be required to file a T3 return with Schedule 15. Exemptions apply for trusts holding assets under $50,000.
Income allocations to beneficiaries (via T3 slips) must be supported by designations made by the filing deadline to avoid being taxed in the trust at the top marginal rate.
These elections are central to estate freeze and reorganization transactions. Late filing attracts penalties and may not always be accepted by CRA.
| Election | Deadline | Penalty for Late Filing |
|---|---|---|
| Section 85 — Transfer to corporation | T2 filing due date for the transferee corporation's tax year that includes the transfer | $100/month late (max. $8,000) + $25/day penalty on excess elected amount |
| Section 85.1 — Share-for-share exchange | Automatic rollover; no election form required | N/A — but must meet qualifying conditions |
| Section 86 — Share exchange reorganization | No election required; automatic if conditions met | N/A — but FMV of new shares must not exceed FMV of old shares |
| Section 51 — Share conversion | No election required; automatic if conditions met | N/A — conversion must be in the share provisions |
| Section 73 — Spousal rollover | Automatic; elect out on T1 if desired | N/A — attribution rules apply unless elected out |
| Subsection 164(6) — Post-mortem loss carryback | Within the first taxation year of the estate | Election cannot be late-filed; opportunity lost if missed |
| Paragraph 88(1)(d) — Subsidiary wind-up bump | Parent's filing due date for the year the wind-up is completed | May be late-filed with penalty; amount of bump could be denied |
| LCGE Claim (capital gains deduction) | T1 filing due date for the year of disposition | CRA may accept late claims; but carry forward is not allowed |
Section 85 late-filing penalties can be substantial. Always confirm the transferee corporation's year-end to establish the correct deadline. See Estate Freezes for a detailed discussion of Section 85 vs. Section 86 planning.
| Slip / Return | Deadline | Relevance |
|---|---|---|
| T4 — Employment income | Last day of February | Salary/bonus paid to owner-managers |
| T5 — Investment income | Last day of February | Interest on shareholder loans, prescribed-rate loans |
| T5013 — Partnership income | March 31 | Partnerships used in some freeze structures |
| T3 — Trust income allocations | March 31 | Family trust distributions (capital gains, dividends) |
| T5018 — Contract payments | 6 months after year-end | Construction industry subcontractor payments |
| T1135 — Foreign income verification | T1/T2 filing due date | Required if specified foreign property exceeds $100,000 |
Prescribed-rate loans to a spouse or family trust are a core income-splitting strategy. The interest rate is locked at the CRA prescribed rate on the date the loan is made and remains fixed for the life of the loan — making rate timing critical.
CRA announces the prescribed rate before the start of each quarter. If rates are expected to increase, locking in a loan before the quarter change preserves the lower rate permanently.
Interest on prescribed-rate loans must be paid within 30 days of the end of each calendar year (by January 30). Failing to pay on time causes the attribution rules to apply retroactively for that year and all future years — permanently tainting the loan.
Critical: A missed interest payment permanently taints the prescribed-rate loan. Attribution rules will apply for the year of the missed payment and every subsequent year. There is no cure — the only option is to repay the loan and establish a new one at the then-current prescribed rate.
These are not fixed calendar dates but event-driven triggers that require proactive planning. Missing these windows can result in significant unexpected tax liabilities or lost opportunities.
Every 21 years, trust property is deemed disposed of at fair market value, triggering a capital gain inside the trust. For family trusts created during an estate freeze, this date is fixed and non-negotiable. Plan a secondary freeze, rollout to beneficiaries, or wind-up well in advance.
→ Begin planning 3–5 years before the anniversaryWhen CRA prescribed rates are low, it's the optimal time to establish new prescribed-rate loans to a spouse or family trust. The rate is locked in permanently on the loan date. If rates are about to rise, act before the quarter change (Jan 1, Apr 1, Jul 1, or Oct 1).
→ Monitor rate announcements each quarterThe Tax on Split Income (TOSI) rules treat income differently once a child turns 18. After age 18, dividends from a family business may qualify for the excluded business exception if the child is actively involved in the business for at least 20 hours/week (or any prior 5 years). Plan share ownership and roles accordingly.
→ Review share structure before 18th birthdayBefore an estate freeze locks in the current value on preferred shares, consider triggering a capital gain on common shares to use the lifetime capital gains exemption. This crystallization captures the LCGE before the freeze resets the cost base on the new common shares issued to the next generation.
→ Crystallize before the freeze transactionWithin the first tax year of the estate, certain elections can offset double taxation on death. Subsection 164(6) allows a loss carryback from the estate to the deceased's final return. Paragraph 88(1)(d) provides a cost base bump on a subsidiary wind-up. Both have strict time limits with no extensions.
→ Assess within 90 days of deathIf aggregate adjusted investment income (AAII) exceeds $50,000, the small business deduction limit is reduced by $5 for every $1 above the threshold — eliminated entirely at $150,000. Manage investment income, timing of realized gains, and inter-company dividends before your corporate year-end.
→ Review AAII in Q3 of each fiscal yearDisclaimer: This page is for general information only and does not constitute tax, legal, or financial advice. Filing deadlines may vary based on individual circumstances, provincial requirements, and whether dates fall on weekends or holidays. Always confirm specific deadlines with CRA or your qualified tax professional before acting. For current rates, see the 2026 Tax Rate Card and Prescribed Rates pages.
Last updated: March 29, 2026.
Whether you're planning an estate freeze, managing trust deadlines, or reviewing corporate year-end strategies, we're happy to help you think it through.