We’re sure you know this by now, but your personal taxes are due April 30th!
For those who are self-employed, or who have a spouse/partner who is self-employed, the deadline is extended until June 15, 2021.
We are still seeing people on social media asking where to get their taxes done.
This is pretty typical for individuals with full time salary jobs to wait and not likely owe. If you have a consistent history of that, you’re probably fine to file after, however you need to know what the penalties could be.
Late Tax-Filing Penalty
A penalty of 5% on your tax balance owing plus 1% of your balance owing per month for up to 12 months is levied by the CRA, immediately!
For example, if you owe the taxman $4,000 in taxes and send in your tax return 12 months late, your tax bill increases to:
- $4,000 x 5% = $200, plus
- $4,000 x 1% x 12 months = $480
PLUS a Late-filing penalty = $850, making your overall tax bill to $4,680.
This amount does not include the additional interest penalty.
If you were late filing your taxes in previous years as well, the CRA can increase your “late-filing” penalty to 10% of your tax balance, plus 2% per month up to a maximum of 20 months!
At Censea, we do not prepare personal tax returns for individuals who are not already our monthly business clients. We serve our clients consistently and know that taking care of their personal returns makes the best sense so we can advise them of tax savings strategies when we understand their entire situation.
So why wait? If you are in a position to collect a return, wouldn’t it be best to collect your return sooner and put it towards something good?
Schedule getting your bookkeeping and taxes done in January or February every year before the big rush. You’ll thank yourself for the extra return money if Christmas got out of hand!
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Contact us today so we can make sure you are taking full advantage of all the deductions and tax strategies available to you and your business.