Benefits, Interest and Penalties
Mohammed Yasin, CPA,CGA
4-17-2019
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Did you know...
Filing early helps ensure your benefit and credit payments are not delayed or stopped. These include:
¦ guaranteed income supplement (GIS)
¦ GST/HST credit
¦ Canada child benefit (CCB)
¦ related provincial and territorial programs If you have a spouse or common-law partner, they also have to file a return. For more information, see Booklet T4114, Canada Child Benefit, and Guide RC4210, GST/HST Credit. Penalties The CRA may charge you a penalty if any of the following applies:
¦ you filed your return late and you owe tax for 2018
¦ you failed to report an amount on your return for 2018 and you also failed to report an amount on your return for 2015, 2016, or 2017
¦ you knowingly or under circumstances amounting to gross negligence have made a false statement or an omission on your 2018 return For more information, go to canada.ca/taxes.
Interest Interest you must pay to the CRA
If you have a balance owing for 2018, the CRA charges compound daily interest starting May 1, 2019, on any unpaid amounts owing for 2018. This includes any balance owing if the CRA reassesses your return.
Note The CRA may cancel or waive interest if you cannot meet your tax obligations because of circumstances beyond your control. To make a request, get and complete Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties or Interest. For more information, go to canada.ca/taxpayer-relief.
Interest paid to you by the CRA
The CRA will pay you compound daily interest on your tax refund for 2018. The calculation will start on the latest of the following three dates:
¦ May 31, 2019
¦ the 31st day after you file your return
¦ the day after you overpaid your taxes Cancel or waive penalties or interest The CRA may cancel or waive penalties or interest if you cannot meet your tax obligations because of circumstances beyond your control. To make a request, get and complete Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties or Interest. For more information, go to canada.ca/taxpayer-relief.
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