A taxpayer hit by CRA with late-filing penalties illustrates how multiple slip-ups can add up

If you don’t file your tax return on time, you can be hit with late-filing penalties equal to five per cent of any balance owing, plus one per cent of the balance owing for each month your return is late, to a maximum of 12 months.

But, if it’s not the first time you’ve filed late, and you’ve been assessed a late-filing penalty in any of the prior three years, the penalties can double to ten per cent of the unpaid amount, plus a two per cent penalty for each late month, to a maximum of 20 months.

Read More