T
he tax deadline is upon us, and for many
this means a necessary hassle we must face annually – but once dealt with, is
quickly relegated to the back of our minds until this time next year. For
others however, those with a tax debt looming over their heads, tax time brings
with it some serious stressors.
he tax deadline is upon us, and for many
this means a necessary hassle we must face annually – but once dealt with, is
quickly relegated to the back of our minds until this time next year. For
others however, those with a tax debt looming over their heads, tax time brings
with it some serious stressors.
As we hope you are aware, the tax deadline
this year for personal income tax returns is April 30th. If you have
everything in before this date, that’s great, especially if you don’t owe
anything. However, if you have yet to file, and think you might owe, it might
be prudent to consider the late filing penalties and how they can impact your tax debt – it might just be enough to motivate you to
get your filing done.
2013 late filing penalties:
·
If you owe for 2013, and do not
file by April 30th, you will be charged a late filing penalty of 5%
of your 2013 balance, plus 1% of the balance owing for each full month your
return is late (to a maximum of 12 months).
·
If you were charged a late
filing penalty for 2010, 2011, or 2012, your late filing penalty can increase
to 10% of your 2013 balance, plus 2% of the balance for each full month (to a
maximum of 20 months).
These penalties are steep – and no one
wants to get saddled with a major tax debt, plus interest – but what if you
can’t pay? If you are thinking about just ignoring that debt, hoping that by
not filing the CRA won’t catch on and you’ll be spared the financial strain –
think again. The consequences of not filing may mean a notional assessment,
where the CRA will estimate your annual income and charge you what they feel
you owe based on their findings. Continued failure to pay a tax debt can result
in enforcement action, including wage garnishments, frozen bank accounts, even
property liens.
So what can you do? If you have filed and
owe, or if you have yet to file because you are afraid that you will owe, know
that you have options. Don’t ignore that tax debt in the hope that it will go
away. Speak to a debt solutions specialist to find out about all of the options
available to you to get rid of that tax debt once and for all.
For more information about dealing with a
tax debt please contact DebtCare Canada today by calling 1-888-890-0888.
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