Penalty for Late Tax Filing
We get it, life can get in the way and it can be easy to forget certain things. However, it’s best not to forget the tax deadline. If you miss the deadline, it’s important that you file your taxes as soon as possible. Filing with CloudTax is fast, free and guaranteed to get you the biggest refund you deserve.See also “CRA Tax Filing Changes for 2020”If you owe tax for 2019 and you file your return for 2019 after the due date, the CRA will charge you a late-filing penalty. Your penalties for filing late:
- 5% of your 2019 balance owing.
- 1% of your balance owing for each full month your return is late, to a maximum of 12 months.
- Interest charges on the above penalties.
- Additional compound daily interest on the balance owing based, determined by the CRA.
If the CRA charged a late-filing penalty on your return for 2016, 2017, or 2018 your late-filing penalty for 2019 may be:
- 10% of your 2019 balance owing,
- plus 2% of your 2019 balance owing for each full month your return is late. (to a maximum of 20 months)
Tax Tip: Even if you cannot pay your full balance owing on or before the deadline, you can avoid the late-filing penalty by filing your return on time.See also “CRA extends tax filing deadline to June 1 amidst the COVID-19 outbreak”If you have previously filed your taxes late for multiple years, then CRA has the option to double the late filing penalty for each late filing. The same rules apply if you have been assessed a late filing penalty in the past. The monthly penalty for each additional month that you are late also increases, beginning from 1% a month to 2% a month, up to a maximum of 20 months. See also “How do I make a payment to the CRA?”Click here to get started on your 2019 tax return using CloudTax Free. CloudTax will automatically save any changes on your tax return. So, feel free to come back anytime once you start your return.