What happens if I don't file my income tax on time?

Question: What happens if I don't file my income tax on time?

Answer:

If you file your income tax late, you will be charged the late-filing penalty, which is 5 percent of the balance owing and an additional 1 percent of the balance owing for each full month that your return is late, to a maximum of 12 months.

Note that the penalty charged for filing your income tax late may be higher than this if you've already been charged the late-filing penalty in any of the three previous tax years.

If you missed the income tax filing deadline because of circumstances beyond your control, the CRA may waive the late-filing penalty and applicable interest. You can get more information about this in the CRA's circular IC92-2: Guidelines for the Cancellation and Waiver of Interest and Penalties.

Even if you owe more taxes than you can pay by the income tax filing deadline, you should still file your income tax return on time to avoid these late-filing penalties.

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