Unfiled tax returns
The Non-Filer Program (NFP) promotes and enforces compliance with the tax filing requirements of individuals, corporations and trusts.
The Canada Revenue Agency (CRA) actively encourages taxpayers to file voluntarily. If they do not, and there are potential taxes owing, the NFP may take enforcement action, such as requesting returns, raising assessments under subsection 152(7) of the Income Tax Act (ITA), making field calls and potentially prosecution.
On this page
What is a non-filer
Through the NFP, we may select a non-filer individual, corporation, or trust for further review in certain situations:
- Required to file their income tax returns; but have not; and
- Determined that they have taxes owing.
Someone can be considered a non-filer for various reasons. These include:
- not realizing they needed to file
- forgetting to file
- intentionally not filing their taxes
When to file a tax return
If you are unsure whether you have to file your taxes for a given tax year, please visit the following pages to determine what applies to your situation:
The non-filer process
The non-filer process starts after the filing deadline has passed. If we identify an unfiled tax return with potential taxes owing, we will assign the file to the NFP, who will begin to take a series of escalating enforcement actions to obtain the outstanding return(s).
Initial contact
You may receive a letter or notice from the NFP, asking you to file your outstanding tax return(s). Once this happens, you are legally required to file the return(s) under subsection 150(2) of the ITA.
What if we phone you
An officer from the NFP may call you to get more information about your tax situation. They will explain the enforcement process and provide you with a deadline to file your outstanding return(s).
What happens if attempts to contact you have been unsuccessful
If we cannot contact you by phone or mail, an authorized officer from the NFP may visit you at your home, your place of work, or your business. This can happen if we need to:
- confirm your location
- obtain outstanding returns
- pick up or deliver documents
- educate you about your filing requirements and compliance
- serve you a Notice of Requirement or a Requirement for Information letter
In the case of a business, we may need to get, or confirm, information, such as:
- books and records
- income, accounts receivable, and expenses
- business or professional activities and operational status
According to section 231.1(1) of the ITA, you are required to provide the necessary documents and information that an NFP officer asks for. It is important to respond promptly and truthfully to any requests from the CRA during a visit to avoid potential penalties or legal consequences.
According to section 230(1) of the ITA, business owners are required to keep their books and records either at their place of business or residence, unless an authorized representative of the CRA designates a different place where they may be kept.
How to identify an authorized individual from the CRA
In person
The authorized officer will carry a CRA Authorization Card (RC121A) to prove that they are a representative of the CRA. The CRA Authorization Card includes the employee's name and badge number. It is the primary method of employee identification.
Phone call
A legitimate CRA employee will identify themselves when they contact you by phone, providing you with their name and phone number so you can call them back if needed.
If you doubt a caller's identity, ensure the caller is a CRA employee before providing any information over the phone.
If you're unsure about a NFP officer's contact attempt, call the non-filer helpline at the number below:
- Telephone
-
Within Canada or the U.S.:
Outside Canada and the U.S.:
Hours of service for both within and outside of Canada and the U.S.
Hours of service Day Hours Mon to Fri 6:45 am to 7:30 pm (ET) Sat and Sun Closed Closed on public holidays
For more information, refer to What to expect when the Canada Revenue Agency contacts you.
Tax assessment
If you are required by law to file a tax return but do not do so, we may assess you tax owing as per subsection 152(7) of the ITA. Through this process, we won't include voluntary deductions you may have been eligible for, as deductions are dependent on facts we may not have access to. For business expenses, we'll estimate an average amount using previous tax filings as a guideline.
If you decide to do your taxes for a year we have already assessed under subsection 152(7) of the ITA, we'll review your tax return to verify the accuracy of the income you reported and the deductions you claimed and we will issue you a notice of reassessment.
Penalties and interest
You have to submit your personal, business and trust tax returns by the filing deadline when you have tax owing.
You will be subject to a late filing penalty if you miss your filing deadline and owe taxes. If you're late again within three years and we issued a formal demand for a return, we will charge you a repeat late filing penalty under section 162(2) of the ITA. Under specific circumstances, an information return penalty under section 162(1) of the ITA may also apply.
We'll calculate interest based on the amount you owe and penalties assessed.
When events beyond your control prevent you from meeting your tax obligations, you may be eligible for relief from the penalties and interest assessed. For more information, refer to cancel or waive penalties and interest.
If you can't pay the amount of your assessment in full or on time, including any related penalties and interest, contact our Collections department to set up a payment arrangement.
Prosecution
If all attempts to obtain compliance with the filing of your income tax returns have failed, the NFP may consider an enforcement action called a prosecution. This involves legal proceedings and the courts. If convicted of an offence, prosecuted taxpayers may face a fine, jail sentence or, a combination of the two.
Prosecutions fall under federal jurisdiction, and are instituted in accordance with the Income Tax Act.
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