By Bron Vasic with Rebecca van Noppen
Did we know how prophetic the Disney Princess Anna would be in the midst of Covid when she reminded the world to do the next right thing in the animated film Frozen II? In times of uncertainty, confusion, and a path that wasn’t clear, she sang the words that would remind each of us to take one step at a time in the direction of hope.
In fact, they were words David and Rebecca said often to our team, clients, and podcast listeners at More Than Enough at a time when world economics and national shutdowns were causing fear and grief during those pandemic years.
Today, it is a good reminder to keep doing the next right thing as these words reflect the importance of simplicity, clarity, and consistency in financial cashflow management and tax compliance.
As you do the next right thing, remember some of the reasons we follow through on tax compliance at this time of year.
Follow the laws of the land
I know it goes without saying but you are following the laws of the land. The rules regarding the filing of tax information is the foundation of the economic system. By being compliant you also have the physiological satisfaction that goes with that—a sense of well being.
Receive tax benefits
You establish the entitlements and tax benefits that the system provides. Some of these are the GST/HST rebates and provincial tax benefits based on your income, one of which is the child tax benefit that gets calculated each year by July. If you have not filed, this benefit will stop. You don’t lose it forever, but it is an inconvenience to be avoided.
Tell your story
Your tax compliance and filing tells a story, and I think this is one of the biggest reasons to file. Your tax return tells the government what happened to you and your family that year. There are parts of your financial management you need to remember including claims for medical expenses, having dependent parents, charitable donation history, and other applicable expenses. These claims can provide a potential tax break for you. Filing a tax return really helps you remember from year to year the financial situations that impact you and your family.
Doing the next right thing in terms of tax compliance means you are collecting documents, finding a tax specialist or tax program to help you file, and registering for your online Canada Revenue Agency (CRA) account.
The deadline for filing this year is April 30th. Start collecting documents now and file as early as you can. Doing so will help you avoid the risk of penalties and interest that can be punitive.
In the end it makes sense to allow yourself to be the best version of yourself when it comes to compliance. Do the next right thing: it helps you sleep well!