Don’t let CRA tax interest relief tempt you into filing late, experts warn
Source: Investment Executive
Author: Rudy Mezzetta
Date: February 22, 2021
Canadians who expect to owe tax for 2020 and are eligible for Ottawa’s recently announced one-year interest–free tax payment deferral should nevertheless file their returns by the April 30 deadline, tax practitioners say.
That’s because the Canada Revenue Agency (CRA) has not extended relief to late-filing penalties where there’s an unpaid tax liability. Taxpayers who file after April 30 face a penalty of 5% of the balance owing, plus 1% for each full month a return was filed after the deadline, to a maximum of 12 months.
Taxpayers who mistakenly believe they don’t have to file a return on time because of the tax interest relief may not expect this penalty will apply to them, Hett said.
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