CRA & Revenu Québec

Tax Tip: How To Lessen Penalties And Interest For Overdue Taxes

If you do not file your taxes on time, you face costly penalty fees and interest from the Canada Revenue Agency. You face a late filing penalty of 5 percent of your balance owing, plus 1 percent for every complete month your return is overdue, up to a maximum of 12 months. Even if you cannot afford to make the full payment for your outstanding balance, avoid the late filing penalty by filing your taxes before the April 30 deadline. You can also make a request by completing Form RC4288 (Request for Taxpayer Relief) if your late filing was beyond your control.