What if I have a balance owing and can’t pay it?

If you cannot pay the full amount owing, you must still submit your Income Tax Return before April 30th to avoid steep penalties!

When you receive your assessment, you can call 1-800-959-2250 to make suitable monthly payment arrangements.

Revenue Canada is very reasonable and helpful with these arrangements.  They are also more likely not to harass you if you send them a series of post-dated cheques instead of mailing them a monthly cheque.  You will be charged interest on any balance owing after April 30th (approximately 12% per annum).

If you have a balance owing and you do not file by April 30th, you will be penalized 5% of your balance (ie. If you owe $1000 and submit later than April 30th, Revenue Canada will fine you $50.00).   This amount will also go up for every month you are late.

Posted in: GENERAL INFORMATION ABOUT REVENUE CANADA