Are you procrastinating about filing your tax return? Wondering what will happen if you file late? Well what happens will depend on whether you have to pay this year or whether you will get a refund.
Late Filing Penalties:
Those who file individual tax returns late and have a balance owing to the CRA will be subject to a late filing penalty:
If you have already been charged a late penalty in any of the three previous years, then your penalties for the current year will increase to:
So, to save yourself money you need to file on time by the 30thof April.
Exceptional Circumstances That Can Result in Late Filing:
If you are filing late due to circumstances beyond your control, then the CRA may waive the late filing penalty and interest for more information see IC07-1: Taxpayer Relief Provisions. The CRA will considers the following exceptional circumstances:
You may also be able to avoid penalties when your delay in filing is a result of action by the CRA such as:
The CRA can also cancel all or some of your penalties and interest if your inability to pay is due to financial hardship caused by loss of employment, loss of business income, medical bills etc. If you are unable to pay you will need to provide the CRA with detailed financial information including statements of assets, income, liabilities and expenses.
If you are unable to pay the amount that you owe on your taxes by the filing deadline you should still file your return on time to avoid late filing penalties.
From an article by Susan Ward
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