This is the time of year when many Canadians, especially small business owners, find themselves scrambling to get themselves organized for the CRA tax deadline. As long as you are scrambling, it is a good sign because it means that you are committed to getting your taxes filed by the CRA tax deadline, even if you get totally stressed in the process.
If you’re not working hard on getting the accounting done and the taxes filed, it is either because tax time doesn’t get you worked up or it is because you have already missed a prior CRA tax deadline so you are not exactly motivated by the idea of having to have your return in on time – I mean what does it matter, you’re already behind, right? Wrong.
1. Every day you are behind filing your taxes, interest compounds.
2. When you are behind filing, in addition to incurring a penalty for filing late, you will also incur a monthly penalty for each month that passes that you haven’t filed. This will continue over a period of 12-20 months depending on your past history of missing the CRA tax deadline.
3. Also, filing your taxes late can impact your ability to apply for a loan or mortgage. Many banks and financial institutions will want to see a copy of your most recent Notice of Assessment when applying for credit – if you don’t have it they may not approve your financing.
4. CRA collection action. If you are behind filing, the CRA can place a lien on your home, garnish your wages and even freeze your bank account if they suspect that you will owe once filed.
It’s just not worth it, especially since there are programs out there that can help you deal with your tax problem that don’t involve bankruptcy. These include:
1. A government program where you can declare income that was not declared or declared incorrectly on a past return or file returns that are past due. If you are approved the CRA will agree to waive all penalties associated with the re-filing.
2. A government program where, under certain circumstances, the CRA may agree to cancel some or all the interest and penalties associated with your debt.
3. Programs to borrow the money to pay the CRA.
4. Programs to legally bind final payment plans with the CRA.
5. A program that can freeze the interest accumulating on your tax debt and allow you to make a single manageable monthly payment and more…
See – there are options out there, so if you have missed the CRA tax deadline in the past, 2013 is the perfect year to get past due returns filed and put your tax problem behind you.
For more information about the 2012 CRA tax deadline or if you are behind filing returns and need help, please contact Tax Solutions Canada by visiting www.taxsolutionscanada.com or call 888-868-1400.