April 30 is the deadline to file and pay taxes to the Canada Revenue Agency (CRA). Failing to file taxes by the deadline can result in serious consequences, including losing benefits, paying stiff fines, or even facing jail time. The late filing penalty is five per cent of the balance owing for 2023, with an additional one per cent for each full month filed after the due date, up to a maximum of 12 months. For those who have previously been penalized for late filing, the penalty for 2023 may be increased to ten per cent of the balance owing, with additional penalties for each full month of delay, up to 20 months.
In addition to penalties, the CRA will charge compound daily interest starting from May 1, 2024, if the balance owing for 2023 is not paid by the April 30 deadline. The agency can also take more severe actions against individuals who consistently file late or ignore repeated requests, such as garnishing wages, freezing bank accounts, or placing liens on properties. Extreme cases of non-compliance may result in tax evasion or fraud charges, leading to potential jail time. It is important to pay any taxes owed on time to avoid penalties, loss of benefits, or legal repercussions.
It is recommended that even individuals who do not owe money pay taxes on time to avoid penalties and potentially receive interest from the CRA. Failure to pay taxes owed can result in the loss of benefits such as the Canada child benefit or the carbon price rebate. To continue receiving benefits like the Canada child benefit, tax returns must be filed on time each year. For those who are unable to pay taxes owed by the deadline, the CRA offers options to arrange a payment plan to settle the debt.
As the deadline approaches, it is important for taxpayers to ensure that their taxes are filed and paid to avoid penalties and potential legal consequences. It is estimated that about 10 per cent of clients of a chartered personal accountant in Oakville, Ontario, have not yet paid their taxes as the deadline approaches. By filing and paying taxes on time, individuals can avoid penalties, loss of benefits, and potential legal repercussions. It is crucial to be aware of the consequences of failing to file and pay taxes on time and take steps to comply with CRA requirements.
