CRA has many different kind of tax penalties to punish Individuals, Self-employed and Corporations for noncompliance. Here are the typical ones.
Repeated Failure to Report Income Penalty
If you fail to report an amount on your personal or business return in any year and you also failed to report an amount on your return for any of the preceding three years, you may have to pay a federal and provincial/territorial repeated failure to report income penalty.
The federal and provincial/territorial tax penalties are each 10% (or combined 20%) of the amount that you failed to report for repeat failure of reporting income.
False Statements or Omissions Penalty
You may have to pay a penalty if CRA believes that you, knowingly or under circumstances amounting to gross negligence, have made a false statement or omission.
The tax penalties are 50% of the understatement of tax and/or the overstatement of credits related to the false statement or omission.
Late Filing Tax Penalties
If you fail to file tax returns, the CRA will charge you huge tax penalties and interests as the punishment of Not Filing Past-Due Returns
The CRA has the database of income transactions which increased its ability to identify people who have not filed taxes. If you have unfiled returns, you automatically become the target for the CRA to collect revenue.
Penalties For First timers: if you owe tax and do not file your return on time for the first time, CRA will charge you a late-filing penalty. of up to 17% of your balance owing for the penalties alone.
The Late Filing Penalties For Repeat Offenders: if the late filing is a re-occurring event within three years, then the penalties become nearly tripled. The late-filing penalty become up to 50% of your tax owing.
The Compounded Daily Interests
In addition to the late filing penalties, the CRA also charges compounded daily interests on top of the penalties. The tax debts may snow ball before you know it. The combined tax owing doubles in few years because of the penalties and daily growing interests. The worst thing is that the interest keeps running even when you sleep like a forever clicking taxi meter.
Procrastinating costs more! You do not want to wait much longer!
How To Get A Relief From The Tax Troubles
To get a quick relief of your tax troubles, call our experts at CRA Tax Rescue. We deal with all kinds of difficult tax cases and will provide fast relief to the tax troubles you are in. Whichever way we resolve your tax trouble, you can rest assured that we will do everything in our power to find the most affordable and reasonable way to solve your problem. There is no reason that you should spend one more sleepless night worrying about the CRA. Let us help you move on with your life and avoid further tax trouble by putting you in a better financial position today.
We can also provide answers to tax questions you may have about reducing tax risks and the best course of action to take. We love helping people.
Call us for a free consultation to find out how we can help you. There is no obligation or cost, and you risk nothing.
Call 1.866.611.6482 or complete the contact form to your right to book your free first meeting today!