Hello! I did not file my corporate taxes for the past 3 years. If I file it now, will there be any penalties for late filing? Thank you Jim
The standard penalty for filing a Corporate Tax return late is 5% of the unpaid taxes PLUS interest, which is an additional 1% for each complete month the return is late, up to a maximum of 12 months to a maximum penalty of 17%.
Additionally, if you’ve been assessed this penalty for any of the three previous years AND the CRA issues a demand to file the current year’s return, the penalty for a repeat offence will be 10% of the unpaid taxes plus an additional 2% per month for a period up to 20 months—a maximum penalty of 50%.
*These penalties apply to resident corporations.
Therefore, you must file your taxes sooner rather than later. Please feel free to call us, and we will make sure your taxes are filed ASAP.
Elena Furier, CPA, CGA