If you do not file taxes in Canada, CRA can charge late-filing penalties and interest if you owe tax. You may also lose or delay benefits like GST/HST credit and CCB.
Key consequences
- Late-filing penalty if tax is owing.
- Daily compound interest on unpaid tax.
- Potential interruption of income-tested benefits.
- CRA may issue requests or demand-to-file letters.
If you are owed a refund
There is usually no late-filing penalty when no tax is owing. But not filing can still delay or stop benefits and credits.
How to fix it
- Gather slips and prior notices.
- File all missing returns, oldest first.
- Pay as much as you can immediately.
- Request a payment arrangement if needed.
If you cannot pay
File anyway. Filing reduces ongoing late-filing penalties and helps you negotiate payment terms.