Tax Deadline Approaching… With a Twist

Have you filed yet? You have a bit of breathing room thanks to a CRA error.

Yes, it is tax season deadline again. But this year, there's a twist.

Canadians now have five extra days to file their taxes due to “human error”, according to the Canada Revenue Agency (CRA). The CRA issued a statement April 24, stating Canadians could file their returns electronically up until May 5 at 3 a.m. Then, on April 27, the CRA issued another statement, saying the deadline was April 30. But with the damage done and tax filers making the most out of the extra time to file, the CRA now says those who file their taxes after the original April 30 deadline and before May 5 will not face any penalties.  In addition, no interest will be charged until May 5 if the return is filed after April 30.

Business owners have until June 15 to file their returns although interest on any unpaid taxes begins accruing on April 30 even if you file on time.

Penalties for late filing are 5% of the balance due plus 1% for each complete month the return is late, to a maximum of 12%.  Penalties increase to 10% of the balance due plus 2% per month for a maximum of 20 months if you filed late in any of the prior three years.

If the government owes you money, the only penalty for filing late is the delay in receiving your refund.