The CRA late filing penalty, which arises as a result of not filing your previous year’s tax return on time, is 5% of the CRA tax owing, plus 1% of the CRA tax owing for each full month your return was late, for up to 12 months. The CRA late filing penalty as a result of not filing multiple years of tax returns may be 10% of the CRA tax owing plus 2% of the CRA tax owing for each full month your return was late, for up to 20 months. This is in addition to the compound interest which will be charged on your tax debt and penalty, retroactive to when you should have filed.
A CRA tax penalty and interest can be crippling and cause your tax debt to balloon to a size that can make it impossible to pay CRA under terms they will accept and that you can live with.
If you have a tax debt and you’re concerned that you can’t pay CRA, we can help you to:
We offer you a free initial consultation which you can book by completing our contact form, calling 1-888-868-1400 or emailing email@example.com to set up a phone consultation or in-person meeting today!