Missed The CRA Deadline? Apply for Relief from CRA Tax Penalties

Missed The CRA Deadline? Apply for Relief from CRA Tax Penalties

When it comes to the submission of your CRA tax-filing, sometimes it can be a case of six of one, (and) half a dozen of the other. That is to say, paying your CRA taxes within the given deadline (April 30 in Canada) provides considerable rewards and not doing so can land you in both monetary and legal troubles at the subsequent stages.

If you have failed to submit your CRA tax-filing within the given deadline, you might wonder what lies ahead of you and what course of action you should plan in order to avert the penalties associated with it. Here’s what you can do to ameliorate the situation.

Why It Is Important To Not Miss The Deadline to File CRA Tax

In Canada, the failure to file your tax return on or before April 30 may result in the delay or discontinuation of solidarity tax credits or any GST/HST refunds. The same is applicable to the payments associated with old age security benefit and Canada child benefit.

Even as you owe a balance, the fact remains that it is mandatory to get the submission of tax filings done by the fixed deadline i.e. April 30.

In the event of late payment of CRA tax, you will be liable to pay a late-filing penalty which includes 5% of the due balance plus 1% of your balance for the number of complete months for which the return was filed late up to 12 months.

A delay in the filing of penalty in previous years can attract a penalty of up to 10% of the outstanding balance for the current year. Plus, you will also be required to pay an additional 2% of your pending balance for the number of full months for which the payment is delayed. At maximum, it is applicable for up to 20 months.

These facts highlight the importance of filing your return within the given deadline. Rather than avoiding the submission of your return, the sensible thing to do would be to reach out to the CRA so that a payment plan could be worked out to help you pay off the amount of money which is due.

Situations in Which You can Request The CRA to Cancel or Waive The Penalties

Sometimes a delay may also happen due to certain man-made or natural disasters. In such situations, one can ask for the waiver or cancellation of the charges related to interest and penalties. Such instances include the following:

  • Extraordinary circumstances like floods, fires, civil disturbances, postal strike, illness, accident or the demise of a family member
  • A delay in the processing or resources of the CRA
  • Loss of employment or inability to pay excessive charges
  • Not meeting the criteria for the eligibility for filing tax returns

You can request for relief from tax penalties for up to a maximum of 10 years preceding the current year.  Fill out from RC4288 to request for cancellation or waiver of interest or penalties. For help or assistance in this regard, consider reaching out to us. Our experts can offer professional assistance related to CRA tax filings, including CRA tax remediation and appeals in North York Ontario.