Saturday, July 24, 2021
Home Finance Late Tax Filing in Canada - What are the penalties?

Late Tax Filing in Canada – What are the penalties?

As one of the Canadians, it is your responsibility to file your tax at the right time. You must submit your income tax returns by 30th April of a year. Thus, the Canada Revenue Agency anticipates that you will comply with its rules. When you have not followed the rules, you will need to face penalties.

Penalties for late filing of the tax returns

Some income tax filers (both partners and sole proprietors) make delays in filing the tax. They have their payment due to the CRA, and it results in the late filing penalty-

  • 5% of the owed balance
  • 1% of the balance owed every month due to the late return

The CRA might have charged you the late tax filing penalty in the previous years. In that case, the penalty will rise to-

  • 10% of the owed balance
  • 2% of the due balance for every month the tax return is delayed

As a company owner, you have to remit tax return information to the CRA about your employees. When you have delayed in doing it, you have to pay $10 every day as penalty. For the employer who has engaged several employees, the penalties will be higher.

Tax returns Filing deadlines-

You have to know the Canada tax deadline to avoid penalties. It is already said that April 30 is the last date to file your individual tax return in Canada. However, for the self-employed persons, the deadline for tax return filing is 15th June. When you owe a balance, you must pay it by 30th April. For paying the balance via mail, your letter will get postmarked on that date.

The rules are slightly different for businesses with partnerships and sole proprietorship. The Agency declares your business revenues on the T2125 form. The tax filing deadline for these business owners is 15th June. However, their penalties for late filing are similar to individual taxpayers.

Do you get some relief from the owed income tax 2020?

The best fact is that you have a chance of getting relief for the owed income taxes in 2020. However, to be eligible for the relief, your income must not be more than $75,000. But, make sure that you have filed the 2020 tax return.

When you have fulfilled the criteria, you will be eligible for the tax-related interest relief until 30th April, 2022.

You will also enjoy the Taxpayer Relief in other circumstances-

  • You have an accident and serious illness
  • You have undergone emotional distress due to death and divorce.
  • There is a disaster, like an earthquake and flood
  • Your communication by mail is disrupted by a strike

The penalties are also avoidable for some other reasons-

  • The CRA has made mistakes in the processing
  • Wrong information on the tax return
  • Late processing of the owed amounts
  • Delays from audits and reviews

Now, you can take steps for the late filing of the tax returns. However, to know the income tax refund amount, you may use Canada Income Tax Calculator. You will find accurate calculations.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

WHY DO YOU NEED THE BEST CAR SEAT COVERS?

If you have got a car, then you should also think about its interiors. Most people love to add new and durable black back...

Online Transgender Dating Sites Helps In Finding Love

Have you become aware of 2 fans that never destructed when somebody is considering them during their dating? Well, some stated that they are...

The Benefits of Hiring a Moving Truck

If you are taking a Do It Yourself method to relocating, you might intend to take into consideration every one of the benefits of...

Taste Your Favorite Italian food in the best Italian restaurants in Melbourne.

If you are a food lover in Australia, Melbourne would certainly be an ideal food location for you. Off late, Melbourne has ended up...

Recent Comments