GST/HST filing penalties
Failing to comply with your GST/HST obligations could lead to penalties, interest, or even prosecution.
Penalties that may apply
Different actions result in different penalty amounts.
You cannot claim an income tax deduction for any penalty paid or payable for failing to correctly file a GST/HST return.
- Filing your return late
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If you file after your due date and you owe money, you may be charged a late-filing penalty.
Refer to: GST/HST filing deadlines
How the penalty is calculated for filing late
Calculate: A + (B × C), where:
- A is 1% of the amount owing
- B is 25% of A
- C is the number of complete months the return is overdue, to a maximum of 12 months
We will not charge you a late-filing penalty if:
- You have $0 owing
- We owe you a refund
- Failing to file electronically
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If you are required to file electronically and do not do so, we will charge you a penalty.
Refer to: Mandatory electronic filing
How the penalty is calculated for failing to file electronically
The penalty amount you will be charged for not filing electronically if you are required to is:
- $100 for the first time
- $250 for each subsequent return you do not file electronically
- Failing to accurately report information
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For electronically filed returns, you may be charged a penalty for any of the following actions:
- Not including information you were required to include
- Making a false statement
- Reporting certain amounts incorrectly, or reporting more or less than you should have:
- Recaptured input tax credits (RITCs)
- Resales of housing that are subject to the HST, where the housing was originally purchased on a grandparented basis
- The transitional tax adjustment
- Provincial transitional new housing rebates
How the penalty is calculated for failing to accurately report information
Generally, the penalty for reporting information incorrectly is at least 5% and up to a maximum of 10%, made up of:
- 5% of the incorrect amount, plus
- 1% per month of the difference between what is reported and what should have been reported, until the amounts are corrected
- Ignoring a request to file your return
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If you receive a demand to file and do not file, you may be charged a penalty.
How the penalty is calculated for ignoring a request to file
The penalty for not filing after receiving a demand is $250, in addition to other penalties that may apply.
Additional penalties for financial institutions
If you are a financial institution who is also required to file Form GST111, Financial Institution GST/HST Annual Information Return, there are additional penalties associated with failures to properly report information on that return.
Refer to: Guide RC4419, Financial Institution GST/HST Annual Information Return
Interest on late or incorrect payments
In addition to filing penalties, you may be charged interest if you:
- Have an overdue balance owing on a return
- Make a late or insufficient instalment payment
Refer to: How and when interest applies to GST/HST remittances
How to cancel or waive penalties or interest
In some extraordinary circumstances, certain penalties and interest amounts may be cancelled or waived.
Refer to: Cancel or waive penalties or interest
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