Life can be very hectic and between work and the family, it really can become very difficult to find some spare time to take care of even the most important things; such as your taxes. However, it is absolutely essential that you file your taxes on or before April 30th if you want to be free from the late tax penalty and fines that come with filing late.

Being late with your taxes is going to create multiple problems for you. For starters, you won’t have access to essential tax information. If you want to apply for a student loan or any other similar financial benefit you will have to provide your tax information. If you haven’t filed your taxes, you will naturally not be able to apply for these loans and this can put a lot of limitations on your life. Not only that but when you don’t stay up to date with the CRA you are going to lose out on a lot of benefits that you could otherwise be gaining.

For instance, if you don’t bother to update your status with the CRA when you get married and have children then you will not be given the child benefit, which is a major benefit for many families across Canada. You also won’t be eligible for the GST return and many other benefits since you haven’t kept your files updated.

Not only do you lose out on benefits but you will also have to pay penalties as well. For individuals who owe taxes, not paying back the taxes before the deadline of April 30th is going to become a very costly endeavor. First of all, interest will be charged on the amount of taxes that are due. Secondly, apart from the interest, you will also have to pay 5% of the amount owing plus 1% of the amount you owe for every month that you were late. This fine is increased by double if you have not paid your taxes for consecutive years.

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If you are late for your taxes then you need to make time and book an appointment with a chartered accountant immediately. You need to get the file submitted as soon as possible so that you are free from the interest and additional fines which you will be compelled to pay if you have not been regular with your financial paperwork.

Life can get very busy and very hectic, but no matter what happens, you need to get you taxes filed-especially if you live in Canada. Unfortunately, there is no problem big enough to waive you from paying your taxes completely (even if you die the individual in charge of your estate has to pay your taxes before the year ends). 

However, if a very big event did occur such as sickness or death of a family member you may be forgiven from these penalties for filing late. You simply have to fill out the form found on the CRA website and submit it. It is important to note that any request should be made within 10 years of when the fine was given or within 10 years of when your taxes were late. 

For example, if you were penalized for not paying taxes from 2006-2018 (which would be a terrible situation to be in) you will only be able to request interest and penalty relief for the fines issued on 2008-2018. Anything that was before 2008 has to be paid off in full.

It is always a good idea to ask a chartered accountant for help if you find yourself in a serious tax crisis or in serious trouble with the CRA.