Penalties for not filing on time

Important facts

  • You have until midnight on or before April 30, 2015, to file your 2014 income tax and benefit return.
  • If you or your spouse or common-law partner is self-employed, you have until midnight on June 15, 2015, to file your return.
  • Any balance owing must be paid on or before April 30, 2015—even if your return is due on June 15, 2015.

What happens if I don’t file on time?

When you file your yearly tax return, you are letting the Canada Revenue Agency (CRA) know your current tax situation. Without that information, the CRA can’t be sure that you are still eligible to receive certain benefit payments. If you don’t file on time, your benefit and credit payments (for example, the Canada child tax benefit and the goods and services tax/harmonized sales tax credit) may be interrupted.

Also, if you have a balance owing and you don’t file your return on time, we’ll charge you a late-filing penalty. The penalty is 5{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5} of your 2014 balance owing, plus 1{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5} of your balance owing for each full month that your return is late, to a maximum of 12 months. If we charged a late-filing penalty on your return for 2011, 2012, or 2013, your late-filing penalty for 2014 may be 10{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5} of your 2014 balance owing, plus 2{cae2521f64dcff784c511b644c6cc8c98f9594c79acdd41ba953a724385391e5} of your 2014 balance owing for each full month that your return is late, to a maximum of 20 months.

In addition to the late-filing penalty, if you have a balance owing for 2014 you’ll be charged compound daily interest beginning May 1, 2015, on any unpaid amounts owing for 2014.

Even if you can’t pay all of your balance owing right away, you should still file your return on time. By filing on time, you’ll avoid the late-filing penalty.

Contact Us

Do you have questions about this article?

GB Pilley & Associates Ltd. can assist you with that.
Contact Us