Do you avoid sending in your taxes? Or, did you somehow, just forget? Here are some good reasons to submit them, even if you're a bit behind.

It's not the end of the world that you missed a deadline (or a few!) 

The Canada Revenue Agency (CRA) is really only concerned with collecting any taxes you may owe to them. They are less concerned if you don't owe anything. So, consider getting back on track as soon as possible and file any outstanding returns that you may have.

A few things to note:

• Interest and Penalties.
  • If you owe money, there is a late-filing penalty of 5% of the balance owning, plus 1% of the balance owing for each month that the return is late, to a maximum of 12%. This means that if you are over a year late in filing, you will be charged a penalty equal to 17% of what you owe.
  • If you were late on any of the three previous years, that penalty doubles.
  • In addition to the late filing penalties, they will charge compound daily interest on any unpaid balances (including the penalties) based on the prescribed interest rate in effect throughout the outstanding period. This rate is currently 5% per annum, and has ranged from 5% to 6% over the last 10 years.
  • The interest and penalties can be very expensive, if you're really far behind.

If you didn't file due to extenuating circumstances that were out of your control, contact me and I can help you file for taxpayer relief. There is a possibility that you can apply to have some or all of the interest or penalties waived.

• Missing out on refunds, rebates or benefits.
  • Once you do file your taxes, if you have a refund coming, the above penalties and interest do not apply.
  • If you have any refunds, there is no good reason NOT to file. You are hurting yourself and giving the CRA 'an interest free loan' from you.
  • You may be missing out on benefits that can only be paid out, once your tax returns are files. These may include gst/hst credit, the Climate Action Incentive (aka carbon tax rebate) or the Canada Child Benefit.
  • You are entitled to these benefits, as a Canadian citizen so take advantage of it. If you don't file, you will stop receiving them. Some are paid retroactively once you are up to date but talk to me about all the details.
  • This is an important one... there are time limits on getting any CPP or EI overpayments back (4 years and 3 years, respectively) so you want to keep that in mind. This is a big deal if you have multiple jobs in the same year, since you tend to overpay in those situations.

If you are not filing on time because you can't afford to pay your balance, you can talk to the CRA about payment options. They are very reasonable with their expectations. If you ask nice, they will agree to monthly payments, as long as you make a plan. Don't ignore the balance or filing all together or else you'll have collections on your back.

Catching up is actually quite simple. Gather all your related tax documents and give me a call. I will make sure that we get your past returns prepared and filed, as soon as possible. Then, you can get on with more important things in your life.

If you have any questions, please contact me at 780-995-5236.