Need help? Behind on your books? We catch you up. →
Falling behind on returns is common, especially for new business owners. It is also fixable, and the longer you wait the more interest builds, so the best time to start is now.
What late filing costs
- Late-filing penalty: generally 5% of the balance owing plus 1% for each full month late, up to 12 months. Repeat late filing can raise this to 10% plus 2% per month.
- Interest: charged daily on unpaid balances and on penalties at a rate set each quarter. It is not deductible.
- Delayed benefits: unfiled returns can hold up credits and benefits you are entitled to.
Quebec taxpayers also face Revenu Québec’s own penalties and interest on top of the federal ones.
Voluntary disclosure
Both the CRA and Revenu Québec run voluntary disclosure programs that can reduce or cancel penalties and part of the interest when you come forward before they contact you. Conditions apply (the disclosure is generally voluntary, complete and includes payment of the estimated tax), and the rules change, so confirm eligibility before you file.
How to catch up
- List the missing years for personal, corporate, GST/QST and payroll filings.
- Pull your slips and notices from your CRA and Revenu Québec online accounts.
- Rebuild the books for each period so the returns rest on real numbers. See our catch-up bookkeeping.
- File the oldest year first and pay, or arrange payment for, what is owing.
- Set up a deadline calendar so you don’t fall behind again.
If you are owed money
File anyway. The CRA’s taxpayer relief provisions can generally consider adjustment requests for the previous ten calendar years, although refunds are never guaranteed.
Not sure where to start? Talk to us and we’ll map out what is missing.