Fine of $6,000 for Delinquent Tax Filer

Sooner or later theyíre gonna get you if you donít file your tax return! At least that was the expensive lesson learned by a BC man who failed to file tax returns for six years. On September 1, 2010, a hefty court-imposed fine of $6,000 on top of unpaid taxes and interest was handed down. CRA penalties have not been indicated to date. He must also file all outstanding tax returns and has been handed a years probation.

A good tax preparer can complete previous years' returns using information provided by the taxpayer and missing information obtained directly from employers and CRA. Prosecution and penalties can be avoided through the Voluntary Disclosures Program (VDP) if outstanding tax returns are filed before CRA initiates action. Taxes owing and interest must still be paid. For more information see www.cra.gc.ca/voluntarydisclosures

Educational Resources:   Learn more about filing prior years' returns, deadlines, fines and penalties by taking the Knowledge Bureau's certificate course Introduction to Personal Tax Preparation Services.