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Unfiled Returns

Do you have unfiled tax returns or perhaps even owe money in response to a tax return and have not yet paid? We understand that people’s lives get overwhelming and busy, however, it is ILLEGAL under the Canadian Law to not file your taxes. It is in your interest to file your returns. Let us help to keep you out of the Canadian Revenue Agency’s (the “CRA”) grasp!

If you have not filed your tax returns the CRA can and will create fake tax returns for you just to start getting your money. By not filing your tax return your problems will not disappear, they will only continue to get worse. Barrett Tax Law can help the situation from getting worse.

If you have made no money in a calendar year then it is indeed true that you do not have to file taxes. However, you are MISSING OUT on credits and on other forms of possible government assistance. Filing your taxes just makes sense.

PENALTIES

First Time Offenders

There is a penalty for filing a return late, which is 5% of the unpaid taxes PLUS an additional 1% per month for upwards of 12 months, with a maximum penalty of 17%.

Repeat Offenders

For repeat offenders the percentage is even higher for unpaid taxes being 10% PLUS an additional 2% per month for upwards of 20 months with a maximum penalty of 50%.

For more information on penalties imposed by the CRA, click here.

OVERDUE TAXES

The CRA can and will charge daily interest rates on any overdue taxes or balance owing. Even if you do not owe money but have not filed your returns, the CRA is able to charge a daily interest rate. Interest begins the day after your tax return is due. There are ways in which Barrett Tax Law can assist you.

If you have unfiled tax returns or unreported income you may have the option of partaking in the Voluntary Disclosure Program (the ‘VDP”). A common reason for not filing taxes is that people fear that they will be unable to pay the tax owing or they are overwhelmed by how many returns they have to complete. Do not let this scare you. There are many ways available to allow you to pay off the taxes while avoiding being further penalized by the CRA, for instance tax relief.

COLLECTING UNPAID DEBT 

You must be careful as the CRA has a wide array of ways in which they collect unpaid debt from an individual or a business. The most common methods include:

  • Wage garnishing;
  • Imposing property liens;
  • Destroying your credit;
  • Forcing the sale of your home;
  • Freezing and/or seizing bank accounts;
  • Intercepting monies payable to you; and
  • Seizing your assets

The penalties for unfiled returns and outstanding taxes owing are extremely serious. Barrett Tax Law is here to assist if you!