Missed the Tax Deadline in Canada? Here’s What Happens—and What You Should Do Now

At TiKiTax, we help individuals and small business owners manage late filings all the time—whether it's a small tax bill or more complex CRA penalties and interest. This article will walk you through what to expect, what actions to take now, and how to avoid this situation in the future.

1. Canada’s Tax Deadlines—Do You Know Yours?

• Salaried individuals: The deadline to file your tax return is April 30 each year.

• Self-employed individuals: You have until June 15 to file, but any taxes owed must still be paid by April 30.

• Missing either the filing or payment deadline can result in penalties and interest.

2. What Happens If You File Late?

a. Late Filing Penalty

If you file your return after the deadline and you owe taxes, the CRA applies:

• A 5% penalty on the balance owing, plus

• An additional 1% per month (up to 12 months) that the return is late.

➡️ That’s up to 17% in penalties after one year.

Example: If you owe $5,000 and file 5 months late, your penalty would be:
$5,000 × (5% + 5%) = $500.

b. Daily Compounding Interest

CRA charges daily interest on unpaid balances starting May 1st until the debt is paid in full. The interest rate adjusts quarterly and is typically higher than bank interest rates.

c. No Filing = No Refund

If you're entitled to a refund but don’t file your return, CRA won’t issue it. Worse, you may also lose access to:

• Canada Child Benefit (CCB)

• GST/HST Credit

• Low-income support benefits
  
  

3. What Should You Do Now?

1. File as Soon as Possible—Even If You Can’t Pay Yet

Even if you can't pay the full amount, the CRA still wants you to file your return first. Doing so helps:

• Minimize late-filing penalties

• Start a payment plan with the CRA

• Process any potential refunds

📌 At TiKiTax, we can prepare and file your overdue returns within 24–48 hours if needed.

2. Contact CRA or Let TiKiTax Negotiate a Payment Plan

If you can’t pay right away, CRA allows installment plans. You can either:

• Call CRA directly to arrange payments, or
  

• Let TiKiTax represent you and negotiate a plan on your behalf

3. Check Previous Years—You May Need to File Multiple Returns

CRA can issue higher penalties if you’ve missed filing for multiple years. If that’s the case:

• Use the Voluntary Disclosure Program (VDP) to file past returns
  
  

• This may help reduce or eliminate penalties, especially if you come forward proactively

4. How to Avoid Late Filing in the Future

• Set recurring reminders for tax season (March–April)

• Use a professional tax service to stay on schedule

• If you're self-employed, set up quarterly payment plans

• Consider tax deductions at source or early contributions

💡 How TiKiTax Can Help

• Prepare and file overdue returns (personal & business)

• Work with CRA to set up payment arrangements

• Provide step-by-step guidance from start to finish

• Represent you if you're audited or contacted by CRA

📞 Missed the Deadline? Take Action Today!

👉 You’re not alone—thousands of Canadians miss tax deadlines every year. What matters most is that you act now.

Book a free consultation with a tax expert at TiKiTax. We’ll help you:

• Review your tax situation

• Estimate any penalties or interest

• File properly and get back on track