Beware slackers!

Taxpayers who are late with their tax returns and who owe taxes will be charged interest and late filing penalties.  Interest is charged on the outstanding balance starting the day after the due date of the return and is compounded daily. 

Interest are subject to change quarterly so make sure you check the CRA website regularly for updated rates (http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/ntrst/menu-eng.html).

The late filing penalty is 5% of the outstanding balance, plus 1% of the outstanding balance every month that your return is late, to a maximum of 12 months. 

Remember, prepare your tax returns well ahead of the due date to avoid paying interests and penalties!

Procastinate later — interests and penalties for late tax returns

We are weeks away from the due date of our Personal Income Tax Returns.  If you have not started on your returns yet, this might change your mind.  Did you know that the CRA charges interests and penalties if you owe taxes and  file your taxes after the due date? Yes they do! The CRA charges interests on the outstanding amount starting the day after the April 30th due date and is compounded daily.

Not only that, the CRA charges a  late filing penalty of 5% of the outstanding balance plus 1% of the oustanding balance every month that your return is late, to a maximum of 12 months. 

Remember:  Prepare your tax returns way ahead of  time. The earlier you file your tax return the better! 

If you have any tax questions, let the tax guru know!