In Canada the tax season awaits each taxpayer. This tax season is a busy time for the taxpayers and the CRA. The CRA offers various methods for the return filing such as paper filing or E filing. Each year the tax filing deadline is provided by the CRA. Also this year the Tax filing due period is provided by the CRA and this period is 30th April 2024 for the employers and employees and 15th June 2024 for the self employed citizens. The late penalty is imposed on the citizens who do not file or pay the due balances on the given deadline. Today we will talk about the Canada Late Tax Filing Penalty 2024 and with this we will know the amount for the penalty and how this penalty amount is being charged to the taxpayers. Also we will know how this penalty amount can be reduced. The CRA enforces the late filing penalty as a way to encourage the timely tax return submission and this ensures that every taxpayer in Canada fulfils their tax obligations.
Canada Late Tax Filing Penalty 2024
The late filing penalty or the balance owing penalty is being imposed on the taxpayers. This penalty applies to the individuals, business and the other taxpayers who fail to file their tax returns by the annual deadline as for the personal taxes the deadline for 2024 is 30th April and for the self employed citizens the deadline for 2024 is 15th June. This late filing penalty is calculated by the CRA as the percentage of the unpaid taxes that are due on the last return date and the additional interest is also charged on the daily outstanding balance.
The taxpayers who have the genuine reason for the return late filing they can also apply for penalty relief which may reduce or waive the penalties. The CRA encourages the taxpayers to file on time so that the penalties may not be imposed. Also if they immediately can’t pay the full balances then they can choose the instalment option to avoid penalties. Check this guide for Canada Late Tax Filing Penalty 2024 and also we will look at the instalment option.
Canada Tax Filing Dates 2024- Overview
| Post Title | Canada Late Tax Filing Penalty 2024 |
| Year | 2024 |
| Name of the Country | Canada |
| Managing Authority | Service Canada |
| Late Filing Penalty | 5% or 10% |
| Due Date for 2024 | 30th April 2024 and 15th June 2024 |
| Tax Instalment Penalty | $1000 or 25% of the Instalment Interest |
| Instalment Due Date | 15th March, June, September, December |
| Post Category | Finance |
| Official Web page | www.canada.ca |
Canada Tax Filing Due Dates & Penalty 2024
For the 2023 tax return those who do not pay the balance on the due date which is 30th April for the employers and employees and 15th June for the self employed citizens then the penalty is being imposed to them. On the due balance the compound interest is being charged from the 1st May 2024 or the 16th June 2024. On the unpaid amount or the due balance this interest is being charged. The interest rate for this gets adjusted every three months. We can say that for every quarter the interest rate is being determined as per the prescribed interest rates. Here we will see each quarter interest rate:
| Interest On | 1st January till 31st March | 1st April till 30th June | 1st July till 30th September | 1st October till 31st December |
| Overdue taxes, CPP Contributions | 10% | 10% | 9% | 9% |
| Corporate Taxpayers | 6% | 6% | 5% | 5% |
| Non Corporate Taxpayers | 8% | 8% | 7% | 7% |
Tax Instalment Interest 2024 In Canada
The taxpayer has the option to pay the balance due in instalments and this way the taxpayers can avoid the penalties. The taxpayer who chooses the option to pay the balance due in instalment should pay the instalment on the due date or before this. If the taxpayer misses the instalment payment or pays the less instalment then the instalment interest is being charged to the taxpayer. For this 2024 the instalment tax due date is:
- 15th March 2024
- 15th June 2024
- 15th September 2024
- 15th December 2024
If on these dates the instalment is not paid then the instalment interest is being charged. The instalment penalty as for this is higher of any following:
- If the instalment interest charges are over the $1000 or
- 25% of the Instalment interest.
Filing Tax Return Late- Penalty
The taxpayers who are filing the tax return late could get the penalty of 5% on the balancing owing + 1% of the balance owing for the full month the return is late upto the maximum of 12 months. The taxpayer who were charged a late filing penalty for any previous three years and file the return late again then the penalty would be raised to the 10% and the 2% of the balance owing per month for upto 20 months.
Fact Check: Canada Late Tax Filing Penalty 2024
This is reliable that the CRA imposes the penalty or the interest when the taxpayer files the tax returns late. This penalty can be avoided with the instalment tax payment but when the taxpayer does not pay the instalment taxes as per the due date then also the interest is being charged. The provided interest rates and the penalty amount is reliable for this year as this is communicated by the CRA. For the more tax filing penalty updates the user can go on CRA Portal or service Canada portal.
FAQ Related To Canada Late Tax Filing Penalty 2024
When the return is filed late or there is any unpaid balance the late penalty is being imposed.
This late penalty can be avoided when you file the taxes on time.
The penalty is th 5% of the unpaid balance with 1% for each month late for 12 months.
Yes, the penalty is raised to 10% and 2% for each month late for 20 months.
On the CRA or service Canada page the late penalty data can be found.
