What is the CRA late-filing penalty?
If you owe a balance and file after the deadline, the CRA charges 5% of the balance owing plus 1% for each full month the return is late, up to a maximum of 12 months. That is a maximum of 17% of your balance for a first offense.
What is the repeat late-filing penalty?
If the CRA charged a late-filing penalty in any of the three previous years and issued a formal demand to file, the penalty doubles to 10% of the balance owing plus 2% per month, for up to 20 months. This can reach 50% of the balance.
Is there a penalty if I file late but owe nothing?
There is no late-filing penalty if you have no balance owing, because the penalty is a percentage of the balance. However, filing late can delay benefits and credits such as the GST/HST credit and Canada Child Benefit, so you should still file promptly.
Does the CRA charge interest on unpaid tax?
Yes. In addition to the penalty, the CRA charges compound daily interest on any unpaid balance at the prescribed rate, which is set quarterly and has recently been around 10% per year. Interest also accrues on the penalty itself.