Income Tax Penalties
If you owe tax for the current tax year and do not file your return on or before April 30, then the CRA may impose penalties and interest. They will charge you a late-filing penalty. The penalty is 5% of your current year balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. Your late-filing penalty may be higher if you were charged a late filing penalty in any of three previous years. Liberty Tax Canada strongly suggests that, even if you cannot pay the entire amount on April 30, that you still file to avoid the late filing penalty.