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Late filing of tax return Interest and penalties

Interest

If you have a balance owing for 2019, the Canada Revenue Agency (CRA) charges compound daily interest starting May 1, 2020, on any unpaid amounts owing for 2019. This includes any balance owing if the CRA reassesses your return. In addition, the CRA will charge you interest on the penalties starting the day after your filing due date. The rate of interest the CRA charges can change every 3 months. The interest rate is determine by the prescribed interest rates.

If you have amounts owing from previous years, the CRA will continue to charge compound daily interest on those amounts. Payments you make are first applied to amounts owing from previous years.



Late-filing penalty

If you owe tax for 2019 and you file your return for 2019 after the due date, the CRA will charge you a late-filing penalty. The penalty is 5% of your 2019 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months.

If the CRA charged a late-filing penalty on your return for 2016, 2017, or 2018 your late-filing penalty for 2019 may be 10% of your 2019 balance owing, plus 2% of your 2019 balance owing for each full month your return is late, to a maximum of 20 months.


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