Comments on: CRA Taxes – Late Filing Penalties – Reader Question

By: Dave

Dave — Sun, 11 Dec 2011 19:41:33 +0000

You asked….. What do you folks thing (think) of this situation.

I think, pay attention to your obligations by filing your taxes on time and you won’t have penalties, period. I’m glad you didn’t get into the reasons you didn’t file, because there is no excuse.

By: Shane W

Shane W — Fri, 18 Nov 2011 12:49:46 +0000

What do you folks thing of this situation.

I recently caught up on filing from 2007. (I won’t get into reasons)
All forms filed at the same time.

In 2007 my taxes worked on to a $727 refund. No penalty, no problem.
2008 I owed $796.
2009 and 2010 were small refunds.

CRA penalized me 17% + interest on the full $796 and ONLY THEN applied the $700 credit from 2007. Despite only owing $69 cumualtively for both years and essentially having a substantial credit balance going into the second year they assessed an additional $260.

In my view the their ethics here are in line with MoneyMart…

Any comments/advice?

By: Mike Holman

Mike Holman — Thu, 06 Oct 2011 15:47:50 +0000

@Adam – you should talk to a tax accountant.

By: Adam

Adam — Thu, 06 Oct 2011 03:57:20 +0000

Question,

Just got a letter from CRA procession review center. RE Income tax benefit return 2010.

My employer did pay for educational courses totaling 1300 and textbooks of 420 that I claimed on my tax form. They have asked me to provide a simple statement of did my employer pay for the course/books. If so how much did you record.

If I say no will they review for a small amount or is this just a macro in the CRA system sending review notices? What if I respond saying no what is the worst case I can get into?

By: Arin

Arin — Sun, 08 Aug 2010 04:48:52 +0000

hi all, i haven’t filed taxes for the last 5 yrs coz i have had power of sale etc and deaths in the family and been living very hard… if i wanted to leave Canada and go to my home country, will i be stopped by CRA?

By: ALICE

ALICE — Wed, 07 Apr 2010 02:39:18 +0000

I havent paid taxes for 4 years and my yearly income in canada is approx 2,000.00. i live in the usa.
taxes have been taken out of my oil n gas checks, will i have a big penalty?

By: Joe

Joe — Tue, 30 Mar 2010 07:53:34 +0000

@Marinni

The only way CRA would know you sold the house in Italy is if you disclosed the sale. I thought Canadians can choose NOT to file income outside Canada. Better to talk to a qualified tax attorney

By: jonb

jonb — Sat, 27 Feb 2010 18:53:25 +0000

Is it possible to get away from that situation by renouncing citizenship and never going back to Canada again?
I think Canada taxes people by residency, so I’m not sure what they would do with your case

By: marinni

marinni — Wed, 03 Feb 2010 20:25:46 +0000

I have a long problem with the CRA, it ended up with them giving me a very high penalty, because I sold my house in my country which is Italy, now I cannot ever pay that fine because it is HUGE, my question is , what is the worst that they can do to me, can they cancel my imigrant status?? or what is the worst can they do to me?? the absolute worse.. because there is no way I can afford to pay them what they are asking me, it is just impossible..

By: Tax Dude

Tax Dude — Fri, 16 Oct 2009 19:47:35 +0000

Please be advised that even though there are no ‘late-filing penalties’ if the balance is NIL, repeated requests by CRA to file the returns could end the taxpayer in court if the requests go unheeded. There the taxpayer will be fined a penalty of $1000 per year for those years that returns were not filed, even though there is a NIL balance owing.