Income taxes are due April 30th at midnight for most Canadians,
but what if you missed it or skipped it?
This answer varies depending on whether or not you owe taxes.
You can still file them after the deadline but penalties may apply. As well you can mail or Netfile taxes returns usually up to September 30th.
- Don’t owe taxes then there are not penalties but you will not receive your refund until your taxes get filed.
- Don’t owe taxes but you haven’t filed; there might be a delay in receiving benefits like, GST or Child Tax Benefits
If you owe taxes and have not paid or filed by May 1st penalties & daily compounding interest will begin.
- Penalties start at Five percent of the amount owing
- Penalties can double for Individuals that file late more than once in a four-year period
- Fail to report an amount on your return in pervious years within a four year period you could be hit with a repeated failure to report income penalty of 20%
What if you owe more than you can pay for in income tax?
Experts say you should still file your income taxes.
Check out this article by Susan Ward: What Happens If I Can’t Pay the Income Tax That I Owe?
I have helped many individuals that for one reason or another are years behind in their personal income tax. When your bank will not assist you due to tax arrears I have lenders that will lend sole on the equity in your home. Call today if you require assistance.
