April 30th is almost upon us, and since the only sure things are death and taxes, it’s essential to get your filed on time. Failing to do so can be expensive in a hurry.
Failing to Pay on Time
If you have a balance owing for 2012, CRA and Revenue Quebec charge compound daily interest starting May 1, 2013, on any unpaid amounts owing for 2012. This includes any balance owing if they reassess your return. In addition, they will charge you interest on the penalties starting the day after your return is due. The rate of interest they charge can change every three months.
As well, if you have amounts owing from previous years, CRA and Revenue Quebec will continue to charge compound daily interest on those amounts. Payments you make are first applied to amounts owing from previous years.
And that’s just for paying late. Then there is the added problem of not filing on time.
Filing Your Return Late Can Be Trouble
If you owe tax for 2012 and do not file your return for 2012 on time, CRA and Revenue Quebec will charge you a late-filing penalty. The penalty is 5% of your 2012 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months.
If we charged a late-filing penalty on your return for 2009, 2010, or 2011 your late-filing penalty for 2012 from CRA may be 10% of your 2012 balance owing, plus 2% of your 2012 balance owing for each full month that your return is late, to a maximum of 20 months.
As you can see, the penalties can quickly add up. Cases where the original debt has ended up doubling or tripling aren’t unheard of. Save yourself a lot of frustration and make sure to get your taxes in on time.
When Do I Have To File Anyway?
Generally, your return for 2012 has to be filed on or before April 30, 2013.
Note: If you file your return after April 30, 2013, your GST/HST credit (including any related provincial credit), Canada child tax benefit payments (including those from certain related provincial or territorial programs), and old age security benefit payments may be delayed.
If you or your spouse or common-law partner carried on a business in 2012 (other than a business whose expenditures are primarily in connection with a tax shelter), your return for 2012 has to be filed on or beforeJune 15, 2013. However, if you have a balance owing for 2012, you still have to pay it on or before April 30, 2013.
If you are the legal representative (the executor, administrator, or liquidator) of the estate of an individual who died in 2012, you may have to file a return for 2012 for that individual. For more information about your filing requirements and options, and to know what documents are required, see Guide T4011, Preparing Returns for Deceased Persons, and Information Sheet RC4111, What to do following a death. The due date for the final return will depend on the date of death and whether or not the deceased or his or her spouse or common-law partner carried on a business in 2012.
Getting Them Done
As we’ve shown, it’s vitally important to get your taxes done right and on time. The bonus is that it’s neither difficult to do so, and we give you several options for getting them finished.
Our TaxTron software can help you prepare your return quickly and efficiently. If you’re not comfortable preparing your taxes on your own, our Softron tax professionals can help you navigate the labyrinth of tax rules and strategies to get your return filed and get you the refund you deserve.
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