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2015 Taxes - Interest and Penalties
5-01-2016
Late Filing Penality
If you owe tax for 2015 and do not file your return for 2015 on time, CRA will charge you a late-filing penalty. The penalty is 5% of your 2015 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months.
If CRA charged a late-filing penalty on your return for 2012, 2013, or 2014 your late-filing penalty for 2015 may be 10% of your 2015 balance owing, plus 2% of your 2015 balance owing for each full month your return is late, to a maximum of 20 months.
Even if you cannot pay your full balance owing on or before April 30, 2016, you can avoid the late-filing penalty by filing your return on time.
Repeated failure to report income penalty
If you failed to report an amount on your return for 2015 and you also failed to report an amount on your return for 2012, 2013, or 2014, you may have to pay a federal and provincial/territorial repeated failure to report income penalty. Under proposed changes, if you did not report an amount of income of $500 or more for a tax year, it will be considered a failure to report income.
As a result of the proposed changes, the federal and provincial or territorial penalties are each equal to the lesser of:
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10% of the amount you failed to report on your return for 2015; and
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50% of the difference between the understated tax (and/or overstated credits) related to the amount you failed to report and the amount of tax withheld related to the amount you failed to report.
However, if you voluntarily tell CRA about an amount you failed to report, CRA may waive these penalties
False statements or omissions penalty
You may have to pay a penalty if you, knowingly or under circumstances amounting to gross negligence, have made a false statement or omission on your 2015 return.
The penalty is equal to the greater of:
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$100; and
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50% of the understated tax and/or the overstated credits related to the false statement or omission.
However, if you voluntarily tell CRA about an amount you failed to report and/or credits you overstated, we may waive this penalty.
Footnotes: Footnotes: This column is presented as a general source of information only and is not intended as a solicitation for business. Mohammed Yasin, CPA,CGA, is the principal of M. Yasin & Co. Inc., Certified General Accountants and has offices in Vancouver & Surrey,B.C.
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