The implications of filing your Income Tax and Benefit Return (T1) late
By Adam
April 06, 2010
Lifestyle
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Brought to you by tax analysts from the QuickTax Business Incorporated and Unincorporated team
The deadline for filing your 2009 Canadian individual income tax return is midnight, April 30, 2010. You must electronically file by this date or put a paper copy of your tax return in the mail by that date. As long as the postmark is April 30, 2010 (or sooner), your tax return is not considered late. While few people are happy about owing, there are some compelling reasons for taking care of your balance sooner rather than later. If you file your income tax return after the deadline and you owe a balance, the Canada Revenue Agency (“CRA”) will charge a late filing penalty and arrears interest on the unpaid amount.
Late filing penalty
Any tax return filed after the due date is considered late. The late-filing penalty is:
If you were charged a late-filing penalty in one of the previous three years and are late filing your income tax return again and the Minister has issued a demand to file, the CRA will charge a penalty of:
Interest charges
In addition to the penalty for filing your income tax return late, the CRA will also charge compounded daily interest on:
Self-employed individuals
If you or your spouse or common-law partner ran a business in 2009, your tax return for 2009 is due on or before June 15, 2010. However, if you have a balance owing for 2009, you still have to pay it on or before April 30, 2010.
We suggest that you get going on your 2009 taxes if you haven’t already done so. Even if you cannot pay your taxes by April 30, filing your return on time will eliminate costly penalties.
Tax tips brought to you by tax analysts from the QuickTax Business Incorporated and Unincorporated team
The deadline for filing your 2009 Canadian individual income tax return is midnight, April 30, 2010. You must electronically file by this date or put a paper copy of your tax return in the mail by that date. As long as the postmark is April 30, 2010 (or sooner), your tax return is not considered late. While few people are happy about owing, there are some compelling reasons for taking care of your balance sooner rather than later. If you file your income tax return after the deadline and you owe a balance, the Canada Revenue Agency (“CRA”) will charge a late filing penalty and arrears interest on the unpaid amount.
Late filing penalty
Any tax return filed after the due date is considered late. The late-filing penalty is:
- five percent of the 2009 balance owing plus
- one percent of the balance owing for each full month that your return is late, to a maximum of 12 months
If you were charged a late-filing penalty in one of the previous three years and are late filing your income tax return again and the Minister has issued a demand to file, the CRA will charge a penalty of:
- ten percent of the balance owing for 2009 plus
- two percent of the balance owing for each full month that your 2009 income tax return is late, to a maximum of 20 months
Interest charges
In addition to the penalty for filing your income tax return late, the CRA will also charge compounded daily interest on:
- the balance owing, beginning May 1, 2010 on any unpaid amounts owing for 2009 plus
- any penalties charged
Self-employed individuals
If you or your spouse or common-law partner ran a business in 2009, your tax return for 2009 is due on or before June 15, 2010. However, if you have a balance owing for 2009, you still have to pay it on or before April 30, 2010.
We suggest that you get going on your 2009 taxes if you haven’t already done so. Even if you cannot pay your taxes by April 30, filing your return on time will eliminate costly penalties.
Tax tips brought to you by tax analysts from the QuickTax Business Incorporated and Unincorporated team