CRA late filing penalty even though they got the money on time
Good Morning David:
If a person were to know that he/she could not file their tax return by the deadline for the tax year in question, but did know exactly what they owed in taxes and did pay this money prior to the filing deadline, does CRA have the right to impose a late filing penalty even though they got the money on time? Thank you.
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DAVID INGRAM REPLIES:
If your tax is paid, there is not even a real requirement to file a tax return unless you receive a specific request from the CRA.
If, however, you owe a couple of dollars, the law says you must file a tax return.
I have never seen a penalty assessed against a late filed return. However, filing a return late can count agaisnt you in the future when you do owe tax,
Because you now have two (or more) late filed tax returns, they can double the penalty. �
If a person were to know that he/she could not file their tax return by the deadline for the tax year in question, but did know exactly what they owed in taxes and did pay this money prior to the filing deadline, does CRA have the right to impose a late filing penalty even though they got the money on time? Thank you.
--------------------------------------------------------------------------------------------------
DAVID INGRAM REPLIES:
If your tax is paid, there is not even a real requirement to file a tax return unless you receive a specific request from the CRA.
If, however, you owe a couple of dollars, the law says you must file a tax return.
I have never seen a penalty assessed against a late filed return. However, filing a return late can count agaisnt you in the future when you do owe tax,
Because you now have two (or more) late filed tax returns, they can double the penalty. �
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