Deadline for filing Tax and Penalties for late filing
Income tax filing deadline
The deadline for filing your income tax return in Canada is typically April 30th of each year. This deadline applies to most individuals who are required to file an income tax return, including those who are self-employed.
However, if you or your spouse or common-law partner are self-employed, you have until June 15th to file your income tax return. However, any balance owing for the previous tax year must still be paid by April 30th to avoid interest charges.
It’s important to note that even if you do not owe any taxes or are expecting a refund, you must still file your income tax return by the deadline. Failing to do so may result in penalties and interest charges.
If you are unable to file your income tax return by the deadline, you may be able to request an extension by contacting the Canada Revenue Agency (CRA). However, interest will still be charged on any balance owing after the deadline, so it’s best to file your return as soon as possible to avoid additional charges.
If you need more information about income tax filing deadlines or have questions about your income tax return, you can contact the CRA’s Tax Information Phone Service (TIPS) at 1-800-267-6999.
What are the penalties for liling late
If you file your income tax return after the deadline without an approved extension, you may be subject to penalties and interest charges. The penalty for late filing is 5% of the balance owing on the due date, plus an additional 1% for each full month that the return is late, up to a maximum of 12 months.
If you have a history of repeated late filing, the penalties may be increased to 10% of the balance owing on the due date, plus 2% for each full month that the return is late, up to a maximum of 20 months.
In addition to these penalties, the CRA will also charge daily compound interest on any balance owing, starting on the day after the due date of your return. The current interest rate charged by the CRA on unpaid balances is 5%.
It’s important to note that even if you are unable to pay the full amount of tax owing by the deadline, you should still file your income tax return on time to avoid the late filing penalty. The CRA may be willing to work with you to arrange a payment plan or to reduce or waive penalties and interest if you are experiencing financial hardship.
If you are having difficulty filing your income tax return or paying your taxes on time, it’s best to contact the CRA as soon as possible to discuss your options. The CRA’s Tax Information Phone Service (TIPS) can provide more information and assistance with your tax situation.
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