1. Will I be charged a penalty if I file late?
Yes—if you owe taxes and don’t file by the deadline, the Canada Revenue Agency (CRA) charges a late-filing penalty of 5% of your balance owing, plus 1% per month for each month your return is late (up to 12 months).
If you’ve filed late before, the penalty can double.
2. What about interest charges?
On top of the penalty, CRA charges daily interest on any unpaid balance starting the day after the filing deadline. This interest compounds, meaning the longer you wait, the more you’ll owe.
3. What if I don’t owe any taxes—do I still need to file?
Yes. Even if you don’t owe, it’s important to file to keep government benefits and credits (like GST/HST, Canada Child Benefit, or Old Age Security) coming. Missing the deadline can delay or stop these payments.
4. Can I still file after the deadline?
Absolutely. It’s always better to file late than not at all. The sooner you file, the sooner you stop penalties and interest from growing.
5. Is there any relief if I can’t pay my balance right away?
Yes. CRA allows you to file on time and set up a payment arrangement to spread out payments. Filing on time avoids the late-filing penalty, even if you can’t pay in full right away.
6. How can a bookkeeper help if I’m already late?
A bookkeeper can quickly organize your financial records, prepare accurate returns, and help you set up a payment plan with CRA to reduce penalties and interest.
Tip: If you know you’ll miss the deadline, file as soon as possible and pay what you can. Every day matters when it comes to reducing fees.
