Tax return: what you risk in case of delay

Filing Your Taxes: What You Risk If You're Delayed

What risks do citizens face if they don’t file their tax returns on time? that is to say, respecting the deadline of May 1st?

People in this situation can expect to face two main consequences, says the Canada Revenue Agency (CRA): late-filing penalties to be paid, as well as suspension credits and allowances to which they would be eligible.

Penalties for late filing

By submitting a late tax return, citizens who owe money to the tax authorities will be assessed a penalty of 5% of the balance owed. To this will be added a monthly penalty of 1% for each additional month late.

“The late filing penalty is 5% of your balance due in 2022, plus an additional 1% for each month complete production after the deadline, up to a maximum of 12 months”, details the ARC.

If you are already affected by a previous penalty, for declarations from 2019, 2020 or 2021, these penalties will be increased to 10% and 2% respectively.

The CRA reminds that people in financial difficulty, unable to meet their tax obligations “due to circumstances beyond your control”, can request a cancellation of penalties .

Suspension of benefits

Latecomers are also exposed to a suspension of the payment of their credits and benefits, whether it is family allowances, GST at the federal level, or solidarity credit in Quebec.

These sums will not be lost and can be recovered when your situation is regularized.

“To continue to receive Canada Child Benefit (CCB) and related provincial and territorial payments, you must complete and file your income tax return on time each year,” it’ BOW.

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