Late Filing

Author: Heidi Ibrahim | | Categories: accounting and tax services , accounting services , bookkeeping services , chartered accountant , e file , hst preparation , small business accountant , tax accountant , tax filing , tax preparation , tax return

Interest

  • If you have a balance owing for the year, you are charged compound daily interest starting May 1 on any unpaid amounts owing. This includes any balance owing if your return is reassessed. In addition, you will be charged interest on the penalties starting the day after your return is due.
  • The rate of interest you are charged can change every three months. If you have amounts owing from previous years, they will continue to charge compound daily interest on those amounts. Payments you make are first applied to amounts owing from previous years.

Late-filing penalty

  • If you owe tax and do not file your return on time, you will be charged a late-filing penalty. The penalty is 5% of your current tax year balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months.
  • If you were charged a late-filing penalty on your return for any of the previous three years your late-filing penalty for this year may be 10% of your current tax year balance owing, plus 2% of your current year balance owing for each full month that your return is late, to a maximum of 20 months.

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