File on Time

For the majority of taxpayers, your tax return is due by, April 30th. If either you or your spouse were self-employed during the tax year, your return should be filed by June 15th. However, any tax balance owing to the Canada Revenue Agency is still due by April 30th regardless of whether or not you or your spouse were self-employed. A return may also need to be filed for an individual who died in the tax year. There are more specific rules involved that determine the filing deadline for deceased taxpayers. Check the CRA website or consult with a professional for more information.

Returns that are filed late will attract a penalty between 5 and 17 percent of the outstanding balance. If a return is filed late for the second time in the last four years, the penalty could increase to anywhere between 10 and 50 percent.

Be sure to include income from all sources. Even if you file on time, you could attract a repeated failure to report income penalty if you fail to report income on your return and also failed o report income on one of the last three years.

The CRA will also charge interest on any balance outstanding as of May 1, even if you filed on time. Interest is compounded daily on the unpaid balance at the prescribed interest rates (currently set at 5 percent). If you were assessed a late filing penalty, CRA will also tack interest on top of these penalties.