How Long Does It Take to Get a Tax Refund in Canada?

In Canada, there are a large number of people who are expecting their tax rebates when the season comes. Whether you get your money back by a few hundred or a few thousand dollars, it is always nice to get a refund if you’ve overpaid during the year. Nevertheless, when it comes to when you will receive your refund it depends on the following factors; whether you traditionally filed your taxes, what your status is, and lastly whether your tax returns had some complications or not. In this particular blog post, fixing an important theme about the Canadian tax system, we will cover the most frequent time frames of the refunding process and how accounting firms can help you avoid possible obstacles.

Typical Tax Refund Processing Time in Canada

In Canada, the Canada Revenue Agency (CRA) is responsible for processing tax returns and issuing refunds. The time it takes to get your refund depends largely on how you file your taxes:

Electronically Filed Tax Returns (E-Filing): The best and fastest method of filing your taxes is through E-filing. If you do your income taxes with CRA-certified software online, or through an accounting firm that files online, your refund should arrive in 8 business days if there are no problems with the filing of your income tax return. They do it online most often due to the convenience and the speed it takes to do it.

Paper Filed Tax Returns: Although filing taxes through the post is possible, it is much slower than other methods. While the CRA generally takes approximately 10-12 weeks to complete paper returns these timelines may take longer, especially for those that are filed after the April 30 deadline. For individuals who use paper to file their returns, it is very slow and time-consuming hence it calls for patience to wait for the CRA’s review.

Factors That Can Impact the Refund Timeline

While the general processing time for a refund is clear, several factors can either delay or expedite your refund:

Accuracy of Your Tax Return: The first one relates to your tax return and submission, and one of the most common reasons for delays is inaccuracies, mistakes, or simply differences in the tax return. Some of the common reasons why your return might be flagged include wrong data input, missing or lost supporting documentation, and wrong computations. The factors above can be reduced through seeking the services of an accounting firm, as they understand how best to do it.

Claiming Deductions or Credits: Even where you fill in claims under prescribed deductions or credits like medical expenses, tuition fees, or any other complicated tax credits, this is likely to take the CRA some time to process the return. Such of them may need further proof and can therefore take some more time before you are issued with your refund.

An accounting firm should assist you in avoiding such exemptions and credits, which you can achieve much faster.

Outstanding Debts or Liabilities: The CRA is entitled to use your refund to pay off any debts you may have owed it including unpaid taxes and student loans. This can also minimize or even eliminate your refund or extend the period that you will take to get it. In such situations, accounting firms are in a position to assist the taxpayers on how to deal with the outstanding amounts and how to liaise with CRA to sort out any problem that may impact your refund.

Netfile Issues: At times there may be problems with the Netfile facility through which Canadians are allowed to submit their returns electronically. There are times when the whole system freezes or there might be a slow quarantined computer processing when information is being submitted at its highest filing capacity. Such issues can affect the timing of your refund Most of the time, the charge-off process tends to slow down the refund period. It is always recommended to consult your accounting firms since they often deal directly with the Canada Revenue Agency and can also offer information on handling unexpected system issues.

Additional Reviews: Sometimes the CRA may pick your tax return for some sort of review. This could be in situations where they notice trends that are out of the norm or differences or where you have claimed special kinds of deductions. If so, then you will be able to wait for your refund for weeks or even months. There is not much that one can do to avoid this, however, it is important to have an accounting firm that handles your accounts and prepare your taxes so that your returns are perfect in every way possible so that your chances of a review will be reduced. 

How Accounting Firms Can Speed Up Your Refund

There is no sure-shot method to obtain your refund in a shorter time but engaging an efficient accounting firm can almost eliminate the possibility of the same. Here’s how they can help:

Expert Advice: Accounting firms can help you keep abreast with the laws and such things as tax credits or deductions that are allowed by law are claimed properly. They can also give good advice on techniques that allow you to save on taxes and do everything possible to receive the maximum amount of a refund.

Efficient Filing: The best professional accountants will file your taxes properly and within the appropriate timeline. Errors or omissions can slow down your refund so hiring an accountant to do your taxes can save time.

Dealing with Complex Situations: Especially when it comes to taxes, if your financial status is complicated, like if you own a business if you have rental income, if you are a recent immigrant, hiring an accounting firm can help you to prepare your taxes to avoid delay and other problems which you might experience when dealing with your taxes on your own.

Communication with the CRA: In case of any problems with your tax return, accounting firms will represent you in conversations with the CRA, manage any controversies, and always ensure that your refund processing is seamless.