This Friday night will be midnight madness all over again. Each year, thousands of Canadians race to file their income tax returns by midnight on April 30 and avoid paying a late penalty to Revenue Canada. However, home-based business owners are among the select few who can file after this date without penalty since their deadline is 46 days later.

"June 15 is not too late to file your income tax if you are self-employed or are the spouse of someone who is," said Chartered Accountant Stephen Thompson, author of Beat the Taxman: Easy Ways to Save Tax in Your Small Business. "My recommendation? Ignore the June 15 deadline and go with April 30. We use the June 15 deadline [for clients] when there is a delay since there is no penalty."

No penalty but there is a catch. Even though the filing deadline is June 15, home-based business people and their spouses will be charged interest on money they owe that is not paid by April 30. Since the only way to figure out what you owe is to fill out a tax return, you may as well file by April 30 anyway and escape paying interest. That's Revenue Canada for you.

"If you owe them money and have problems paying it, you are borrowing at 9% which is not tax deductible," said Thompson explaining the government's rate of interest on taxes paid after April 30. "If your business could borrow to free up money for taxes, you may be able to deduct the interest. If you have the option, borrow. Otherwise, file the return [by April 30], pay as much as possible and contact Revenue Canada to arrange to pay the rest."

Borrowing money is not always easy for home-based businesses, so you may not have much choice. Sometimes entrepreneurs end up in a cash-flow crunch when their clients delay payment to pay their own tax bills. A few additional days may be all you need to meet your own tax obligations. Check with Revenue Canada and local financial institutions to weigh your choices.

Since spring is a busy time of year for many home-based businesses, working on your income tax may take you away from servicing your clients. Hiring an accountant may relieve this burden. However, if faced with the choice between earning money and doing your taxes, you may decide that concentrating on business will net you more than you'll save by filing on time. Once things settle down, investigate bookkeeping and accounting services that will keep your finances in order without costing you business.

Revenue Canada also encourages home-based business owners to file by April 30 to receive their federal child tax benefits and goods and service tax/ harmonized sales tax credits.

If Revenue Canada owes you money, the sooner you file the better.

"Due to labour disruptions, Revenue Canada has received fewer returns so far this year than in previous years," announced The Honourable Herb Dhaliwal, Minister of National Revenue who warned Canadians it may take longer than the usual four to six weeks for refunds this year.

If you are expecting a refund, take the fast track. Get your refund in about two weeks by filing over the telephone using TELEFILE or electronically using EFILE. Request that Revenue Canada deposit the refund directly into your bank account. For information on establishing TELEFILE, call your local tax services office or 1-800-959-1114. To get blank returns and forms or information on preparing your return, visit Revenue Canada's website at www.rc.gc.ca.

Published: April 27, 1999

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Futurist and Strategist PJ Wade is "The Catalyst" -- intent on "Challenging The Best Become Even Better." PJ earned this title by translating the dynamic impact of Boomers and their multi-generation families into relevant insights that start people thinking and taking action—in business and in life. Author of 7 books and more than 1600 published articles, PJ encourages individuals to become their own futurist. PJ writes and speaks about the insight, knowledge and solid decision-making skills that professionals and their clients need to live and work in this vortex of change. For instance, since PJ knows that home is headquarters for the new decades-long "unretirement," she wrote the popular book "Reverse Mortgages: Best Friend, Worst Enemy... Your Choice! (CatapultPublishing.com), which is filled with suggestions and insight on protecting and using home equity. Her new business book, "What's Your Point?," which identifies 7 common mistakes professionals unknowingly repeat to their detriment, will be published in 2009. As The Catalyst, PJ provides strategic communication, client appreciation and advanced education services to the financial, tourism, lifestyle and service sectors -- and the clients they serve. A frequently-quoted financial and business commentator, PJ is a thought-provoking strategic speaker who offers practical, real-life suggestions on leaving "the box" behind and embracing Forward Thinking -- a talent she regularly demonstrates in this column. For more on blogs, books and topics, visit TheCatalyst.com.