One of the easiest ways to manage your overall tax costs is to avoid late filing penalties assessed by the Canada Revenue Agency (CRA). Even if you can’t afford to pay the taxes due, filing your return on time will save a minimum five percent penalty. In addition to five percent, late returns are subject to an additional one percent per month penalty to a maximum of twelve months. In other words, the penalty could be as much as 17%.

If you don’t have the information necessary to file your return on time, you are always better off to estimate the missing data and amend your return later once you have received everything you need. We recommend a conservative approach to making these estimates – overestimate income and underestimate expenses – as this will help to reduce interest charges in the future.

Please contact your accountant at Harvey, Lister & Webb Incorporated to discuss the possibilities.

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