Still haven’t filed taxes or unable to pay your tax bill? Our Calgary Licensed Insolvency Trustees can help!
We can help solve your problems with the Canada Revenue Agency (CRA). Here are common tax questions.
What can I do if I can’t pay my taxes?
First of all, you are not alone but it is important to speak with someone who can help. At Hardie & Kelly our Licensed Insolvency Trustees can review your tax debt and any other debt you might have and help you put together a payment plan based on your circumstances. There are
options and you can also look at debt solutions such as a consumer proposal or bankruptcy.
When is the deadline to file taxes in Canada?
If you are an employee the deadline to your file tax return in Canada is April 30th each year.
If you are self-employed the deadline to file your tax return is June 15th, but any tax owing is payable by April 30th annually.
When is it too late to file a tax return in Canada?
It’s never too late to file a tax return, but there will be a penalty for late filing and you will be assessed interest on any tax that you owe.
If I am late filing my taxes is there a penalty?
If you owe tax then there is a penalty for late filing of your tax return. If you are in a refund situation there is no penalty for late filing your tax return.
Can the government freeze my bank account?
Yes, if you owe tax and/or do not work out a payment plan with CRA then CRA can seize your bank account.
If I owe taxes, can the CRA take all my earnings?
Yes, in certain circumstances, however they generally take a percentage of your wages or income if you are a contractor. If you cannot pay your taxes in full it is important to contact the CRA and talk about your options and a payment plan.
I missed the tax deadline but I do not owe taxes.
If you do not owe taxes there is no penalty for filing taxes after the April 30th tax deadline, however you will not receive your tax refund until you have sent in your tax return. You will not receive Child Tax Benefit, Child Tax Credit, or GST tax credit until you have filed your tax return.
I missed the tax deadline and I owe taxes
If you missed the April 30th tax deadline in Canada and you owe taxes then you will have to pay a penalty for filing your tax return late. CRA can apply late penalty fees in three different ways:
- A penalty for filing late
- 5% of the balance owing
- 1% for each late month