Forum: money.stackexchange.com
Tags: <canada><income-tax><taxes>
Title: If I have no exemptions or deductions, just a simple paycheck, do I HAVE to file taxes?
Question: My company holds back tax from each of my pay checks.  I have no other sources of income.  I don't expect I owe anything more on my pay.  Do I really need to file an income tax return?  I live in Canada.

Answers:
sents: text: As a Canadian resident, the simple answer to your question is "yes" Having worked as a tax auditor and as a Certified Financial Planner, you are required to file an income tax return because you have taxable employment income.
text: All the employer is doing is deducting it at source and remitting it on your behalf.
text: That does not alleviate your need to file.
text: In fact, if you don't file you will be subject to a no filing penalty.
text: The one aspect you are missing is that taxpayers may be entitled to tax credits that may result in a refund to you depending on your personal situation (e.g spousal or minor dependents).
text: I hope this helps.
answer_details: author: money.stackexchange.com/users/None/
score: 7
sents: text: While you are required to do so
text: as others have said, it's actually in your interest to do so.
text: In a recent article at GlobeInvestor , Tim Cestnick discusses the benefits of filing tax returns for teens.
text: This situation may or may not apply to you but the message is the same.
text: The main benefits are (1) create RRSP contribution room and (2) be eligible for GST/HST credits and other possible one-shot credits (think oil royalty surplus cheques in Alberta).
text: Excerpt: You see, when Lincoln was 14, he filed a tax return and reported $2,000 of income that year.
text: He paid no tax thanks to the basic personal tax credit, but he created $360 of RRSP contribution room that year.
text: Beginning in 2003, Lincoln started working part-time in his father's business.
text: His father agreed to pay him $6,000 each summer to work in the business, to help save money for university.
text: Lincoln didn't pay any tax on the money he earned in those summers because his basic personal tax credit was always higher than his earnings.
text: In addition, Lincoln added to his RRSP contribution room simply by filing a tax return each year.
answer_details: author: money.stackexchange.com/users/254/fideli
score: 7
sents: text: Yes, you have to file a tax return in Canada.
text: Non residents that have earned employment income in Canada are required to file a Canadian personal income tax return.
text: Usually, your employer will have deducted sufficient taxes from your pay-cheques, resulting in a tax refund upon filing your Canadian tax return.
text: You will also receive a tax credit on your US tax return for taxes paid in Canada.
answer_details: author: money.stackexchange.com/users/None/
score: 4
sents: text: In many cases, you are required to file your taxes by law even if you won't owe.
text: If it's anything like in the US, it's quite possible
text: your employer is not taking the right amount and you may owe more or may even be in line for a return.
text: http://www.usatax.ca/Pages/filing_requirement_taxes_canada.html
answer_details: author: money.stackexchange.com/users/24/Phillip Benages
score: 3
sents: text: If you took advantage of options like a home buyers plan (HBP)
text: you definitely need to file since you must designate how much of the plan to repay.
text: Your employer does not know about what you do with your money so cannot take this into account for the withheld taxes.
text: If you do not report repayment of the HBP it will be treated as a withdrawal from your RRSP i.e. additional income for that tax year.
answer_details: author: money.stackexchange.com/users/19/Zephyr
score: 3
sents: text: You are not required to file a tax return in Canada if you have no taxable income.
text: If you do not file a return you may be requested to by Canada Revenue Agency, and then you'll need to file one.
text: There are hundreds of thousands of Canadian residents who do not file tax returns.
text: The Minister who overlooks the CRA may assess any amount of taxes on any resident whether they file a return or not.
text: There are penalties for failing to file a return or filing late.
text: The penalties are based on a percentage of the taxes owed.
text: If you owe no taxes, then the penalties are meaningless.
answer_details: author: money.stackexchange.com/users/4839/Eric
score: 2

Summary of the answers:
Even if you don't owe anything, you are still required to file a tax return. You may be subjet to a no filing penalty if you don't file.
Yes, even if you have no taxable income, you still need to file a tax return. In fact, if you don't file a return, you may face a penalty.