Canada’s tax deadline has arrived. What happens if you file late?
Global News
Monday, May 1 is the tax deadline this year. If you miss the date and end up owing money to the Canada Revenue Agency, here's what you need to know.
May 1, 2023, marks the deadline for the 2022 tax year, as the end of April fell on a weekend this year.
Though Canada Revenue Agency (CRA) workers remain on strike Monday, the work stoppage has not affected deadlines for filing your taxes.
If you’re reading this on Monday and haven’t filed your income taxes yet — you’ve still got time!
But if you’re not able to get your taxes before that deadline, you might not face any immediate impacts.
Small business owners, the self-employed and their spouses, for instance, have until June 15 to file their taxes for the previous year. The one caveat here is that for those who are self-employed but owe money to the CRA, they still must pay by the May 1 deadline.
Individuals who miss the tax deadline and owe money to the CRA will be hit with a late-filing penalty.
The penalty is equal to five per cent of whatever you owe on your 2022 taxes, plus an additional one per cent per month you’re late after the filing deadline.
In addition, the amount that you owe to the CRA begins to grow with compounding interest on the first day after the deadline. Even if you can’t pay this amount, the agency recommends you file by the deadline anyways to avoid the aforementioned late-filing penalty.