Did you know that over half of Canadians don't file their taxes on time? According to a recent survey, the main reasons people cited for not filing their taxes on time were "procrastination" and "forgetting." There are many other reasons people might not file their taxes on time in Canada. Maybe you were out of the country and didn't know what to do. Maybe you didn't have the money to pay your taxes. Or maybe you just forgot! Whatever the reason, it's important to know what to do if you miss the tax deadline. In this blog post, we will discuss the consequences of not filing your taxes on time and the deadline and penalties for different types of tax filings. We will also talk about how to apply for an extension if you can't meet the original deadline. So don't worry - we've got you covered!
What to Do If You're Late in Filing Your Taxes?
One of the most important things to do if you missed the tax deadline is to file your taxes as soon as possible. The CRA (Canadian Revenue Agency) has a few different deadlines for different types of tax filings. For individual returns, the deadline is April 30th. For business owners, the deadline is June 15th. And for corporations, the deadline is March 31st. You will be charged a late-filing penalty if you don't meet these deadlines.The penalty for individuals is five percent of your unpaid taxes, plus one percent of your unpaid taxes for each month that your return is late, up to a maximum of 12 months. The penalty for business owners is also five percent of your unpaid taxes, plus one percent of your unpaid taxes for each month that your return is late, up to a maximum of 12 months. And the penalty for corporations is ten percent of your unpaid taxes, plus two percent of your unpaid taxes for each month that your return is late, up to a maximum of 24 months.
Apply for an Extension
If you can't file your taxes by the deadline, you can apply for an extension. You can do this by filling out Form T1158 and sending it to the CRA. The extension will give you more time to file your return, but it won't extend the time you have to pay any taxes owing. If you cannot pay the full amount of taxes owing by the original deadline, you should still file your tax return on time and pay as much of the taxes owing as possible. The CRA offers several payment options, including online banking, credit cards, and pre-authorized debit plans. They also offer payment arrangements if you're unable to pay your taxes in full.
If You Can't Pay Your Taxes
If you can't pay your taxes, the CRA will work with you to set up a payment plan. However, they may also charge interest on the unpaid amount and require you to pay the penalty if you miss a payment. If you're not able to make a payment or arrange a payment plan with the CRA, they may take legal action against you. This legal action could include garnishing your wages or seizing assets such as your bank account or investments.
How an Accounting and Tax Firm Can Help
If you're unsure about how to file your taxes or you don't have the time to do it yourself, an accounting and tax firm can help. A professional accounting firm will ensure that your taxes are filed correctly and on time. They can also help you with payment arrangements if you're unable to pay your taxes in full.
Final Thoughts
If you didn't file your taxes on time in Canada, don't panic! There are a few things you can do to rectify the situation. First, try to file your taxes as soon as possible. The CRA has different deadlines for different tax filings, so make sure you know which deadline applies to you. If you can't meet the deadline, you can apply for an extension by filling out Form T1158 and sending it to the CRA. However, keep in mind that this will only extend the time you have to file your return - it won't extend the time you have to pay any taxes owing.If you're having trouble paying your taxes, the CRA offers several payment options, including online banking, credit cards, and pre-authorized debit plans. They also offer payment arrangements if you're unable to pay your taxes in full. Finally, if you're unsure about how to file your taxes or don't have the time to do it yourself, an accounting and tax firm can help. A professional accounting firm will ensure that your taxes are filed correctly and on time. Contact us if you want to ensure you are never late and all your taxes are accurate and filed on time.