Unfiled Tax Returns

Unfiled Tax Returns and CRA Penalties

Do you have unfiled tax returns?

Has the Canada Revenue Agency (CRA) created a tax debt for you without proper information? It is crucial to file all outstanding returns to replace the inflated, inaccurate returns issued by the CRA. The CRA can impose hefty penalties for late or unfiled returns.

Penalties for Unfiled Tax Returns

• First-Time Offenders: 5% of your balance owing, plus 1% for each full month your return is late, up to a maximum of 12 months.

• Repeat Offenders: Liable for much larger fines.

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Proposed Changes to Penalties

• If you fail to report income of $500 or more, it will be considered a failure to report income.

• Penalties include the lesser of:

  • 10% of the unreported amount.

  • 50% of the difference between the understated tax (or overstated credits) and the amount of tax withheld related to the unreported amount.

Eliminating Penalties

If you have unreported income or misstated information on your tax return, there are ways to eliminate the aforementioned penalties. Wealthbees can help coordinate the preparation and filing of your outstanding returns, including:

• Personal income tax returns (T1)

• Corporate income tax returns (T2)

• Excise tax remittances (GST/HST)

• Payroll remittances (T4 and T4 Summary)

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Voluntary Disclosure Program

If the government has not contacted you regarding your unfiled returns, you may be eligible for a voluntary disclosure, which can help mitigate penalties and interest.

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Contact Us

If you have unfiled tax returns, contact a lawyer at Wealthbees to see how we can help.

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