Quick Summary
If you’re a Canadian business owner and you want to know if filling your taxes late when you owe nothing will cause you to pay penalties, the answer is generally no.
The CRA will generally not impose a penalty on late filing assuming that you don’t owe any taxes.
However, it is still a good habit to file on time to avoid taking any risk.
In a situation where you do owe taxes, the CRA charges a penalty of 5% if you miss the deadline, and 1% in addition for every month you miss it. This goes up to 12-months.
If you would like to calculate how much the CRA might charge you, check out our CRA Tax Owing Penalty Calculator
What are the CRA tax filling penalties?
If you’re a Canadian business who believes you don’t owe any taxes to the CRA, you may be fine when it comes to avoiding penalties. Generally speaking the CRA will not impose a late filling penalty.
However, if you’re unsure, the best thing to do is contact the CRA directly to determine whether this is the case for you. If you need support with this because you’re afraid you may owe taxes and don’t know how to approach the situation, reach out to a professional tax accountant.
What are the CRA tax filling deadlines?
Personal Tax Return – In Canada your deadline is April 30th for all personal tax returns.
Corporate Tax Return (T2) – In Canada your deadline is 6-months after the end of your fiscal year. To determine your fiscal year you can contact your lawyer who created your corporation, or contact Canada.ca.
Self-Employed Tax Return – In Canada, your deadline as a sole proprietor is April 30th if you owe taxes, but its June 15th to file your personal tax returns.
What happens if you continue to not file your taxes?
If you’re in a position where you’ve continued to not file your tax returns, the CRA will simply increase your penalty fees %’s.
How do I know how much I owe the CRA?
The best thing to do is log into your CRA business account to determine how much you owe in tax penalties.
If you want a quick answer, we’ve developed a calculator which you can use here: CRA tax owing interest calculator.
Can a tax accountant help me with unfilled taxes?
A tax accountant can certainly help you with any unfilled tax returns to the CRA. At Oakfront Accounting we can file you unfilled tax returns as well as develop a payment plan with the CRA to minimize your financial stress when paying it off.
If you need assistance with filling your overdue taxes, we are able to help you, as we have experience working with both business owners and individuals on their unfilled taxes.
If you want to learn more, click here: Overdue tax filling owing services.
