Canada’s tax deadline has arrived. What happens if you file late? – National | 24CA News
May 1, 2023, marks the deadline for the 2022 tax yr, as the top of April fell on a weekend this yr.
Though Canada Revenue Agency (CRA) staff stay on strike Monday, the work stoppage has not affected deadlines for submitting your taxes.
If you’re studying this on Monday and haven’t filed your earnings taxes but — you’ve nonetheless acquired time!
But if you happen to’re not capable of get your taxes earlier than that deadline, you may not face any quick impacts.
Small business house owners, the self-employed and their spouses, as an example, have till June 15 to file their taxes for the earlier yr. The one caveat right here is that for individuals who are self-employed however owe cash to the CRA, they nonetheless should pay by the May 1 deadline.
Individuals who miss the tax deadline and owe cash to the CRA will probably be hit with a late-filing penalty.
The penalty is the same as 5 per cent of no matter you owe in your 2022 taxes, plus a further one per cent monthly you’re late after the submitting deadline.
In addition, the quantity that you just owe to the CRA begins to develop with compounding curiosity on the primary day after the deadline. Even if you happen to can’t pay this quantity, the company recommends you file by the deadline anyhow to keep away from the aforementioned late-filing penalty.
If you’re unable to pay the penalties or curiosity in your quantity owing for causes exterior your management, you may also request the CRA waive or cancel these charges.
When you miss the deadline for submitting your taxes however the CRA owes you cash — which means you’d get a tax refund — you don’t undergo any penalties or begin accumulating charges to pay again to the company.
But past the financial impacts, failing to file your taxes can have an effect on your eligibility to assert sure advantages in future years and may end up in felony expenses for tax evasion.
You’re additionally simply lacking out on cash you may get again from widespread advantages, such because the GST credit score, which is about to be doubled once more this yr for qualifying Canadians.
Interest won’t accumulate on the cash you’re owed from the CRA — so if you wish to make use of your cash, there’s at all times an incentive to get your taxes filed by the deadline.
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