What Happens if I Don’t File my Taxes on Time?

What Happens if I Don’t File my Taxes on Time?

This is a question asked by many of our first time clients, and for whatever reason the due date for Canadian Taxes is missed.

(Due Dates: April 30th – Employee, June 15th – Self Employed)

 

Penalties for missing the tax deadline are:

 

  • Charged an extra 5% of your taxes owed the day after the due date
  • Each full month after that you will pay 1% of the taxes owed on top of the 5% penalty for up to 12 months
  • If you are a repeat offender, meaning you file your taxes late for several years, you can be charged 10% of your taxes owed for the most recent year as well as 2% every month after; for up to 20 months
  • A federal and provincial penalty, each being 10% of your taxes owed, may be charged if you do not report you taxes for multiple years in a row

 

To avoid the hassle of Canadian Tax Penalties it is important to follow a few simple tips.

 

If payment is your concern, it is highly recommended to file your taxes and submit all the necessary forms as a payment plan can be worked out at a later date.

 

Notifying the CRA about your own failure to file for multiple years may lead to them waiving the federal and provincial fees.

 

Finally, you can always file a Request for Taxpayer Relief with the CRA if you have to file late for reasons beyond your control.

 

An accountant can take control in situations like these and ensure these penalties are prevented by working with you closely to plan your best tax strategy. Call Matthew Gustavson Chartered Accountant for your free no obligation consultation today at 778.484.8155 or email us at mg@matthewgustavson.ca

 

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Contact Info

  • For a free consultation and inquiries, please contact:
  • PDC Business & Tax, Chartered Professional Accountants
  • Telephone: 778.484.5401
  • Email: info@pdco.ca
  • 1593 Ellis Street
  • Kelowna, B.C. V1Y 2A7

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At Matthew Gustavson Chartered Accountant we are committed to providing our clients with a personalized experience that aims to meet the individual needs of each client. In recent years there have been numerous changes to...

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