Failure to remit and late remittances

The CRA can assess a penalty on the amount you failed to remit when:

  • you deduct the amounts, but do not remit them; or
  • the CRA receives the amounts you deducted after the due date.

When the due date is a Saturday, a Sunday, or a public holiday recognized by the CRA, it considers your remittance to be on time if the CRA receives it on the next business day.

The penalty for remitting late is:

  • 3% if the amount is one to three days late;
  • 5% if the amount is four or five days late;
  • 7% if the amount is six or seven days late; and
  • 10% if the amount is more than seven days late or if no amount is remitted.

Note

The CRA will charge you a fee for any payment that your financial institution refuses to process. If your payment is late, the CRA can also charge penalties and interest on any amount you owe.

If you are assessed this penalty more than once in a calendar year, the CRA may assess a 20% penalty to the second or later failures if they were made knowingly or under circumstances of gross negligence.

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