You should always file your return and pay your taxes on time. It helps you save money, by taking advantage of tax credits and exemptions and avoiding possible interest and penalty charges.
- File online, pay online
It's quick, easy, and secure to file and pay online. You can use NETFILE to file your return online. If you qualify, you can use TELEFILE to file your return by phone. My Payment lets you make one or more payments in one simple online transaction. You can use this service if you have access to online banking at a participating financial institution. You can also make your payment using your financial institution's telephone or Internet banking services. Find more information about all of the Canada Revenue Agency's (CRA) e-services at www.cra.gc.ca/eservices.
- Why is it important to file and pay on time?
Filing and paying on time means that your benefits and credit payments, such as the goods and services tax/harmonized sales tax (GST/HST) credit and the Canada child tax benefit won't be delayed. It also means that if you owe money, you won’t be charged a late-filing penalty or interest.
- What happens if I file and pay late?
If you owe tax for 2011 and don't file your return for 2011 on time, the CRA will charge you a late-filing penalty. The penalty is 5% of your 2011 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. The penalty is higher if you are a repeat late filer.
If you have a balance owing for 2011, the CRA also charges compound daily interest starting May 1, 2012, on any unpaid amounts owing for 2011. Even if you cannot pay all of your taxes owing right away, you should still file your return on time and pay what you can. If you file on time, you will avoid the late-filing penalty.
No. However, regardless of the filing method that you choose, keep all your records for at least six years after the end of the tax year to support your claims in case the CRA reviews your return.
With CRA’s online services, you can file your return, track your refund, and change your personal information. You can also sign up for direct deposit to receive your refund in your account at your Canadian financial institution – no more waiting for cheques to arrive in the mail. It’s fast, easy, and secure. For more information, go to www.cra.gc.ca/getready.
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