Failure to File Taxes Could Bankrupt You

It’s better late than never when it comes to your taxes.

If you haven’t done your taxes for a year or two — or more — “get on it before CRA gets on you,” says tax expert Evelyn Jacks.

The author of books such as Jacks on Tax and Essential Tax Facts says you may face big penalties and interest charges for procrastinating. “If you voluntarily comply — that is, file your tax return before you (are ordered) to file — you will avoid gross negligence and possible tax evasion penalties.” Read More…

11 Comments

  1. Vance

    Everyone's situation is different. But for the most part everyone should file their taxes on time even if you don't work nor owe them anything.

    If you don't file then sooner or later they will send you a letter demanding you file the missing years.

    This is from personal experience.

  2. Jesse

    Most people are good with filing taxes so i think CRA is just getting ahead of the curve and making sure #s dont rise of lack of filing. It's a smart move.

  3. Haydn

    The CRA only cares if they are owed money. They need to get their bling.

  4. Al

    I hate to say it but i too am one of those procrastinators. I guess because i dont make all that much each year so i figure why put time in it. I have never owed the government anything so i am not worried.

  5. Howard

    And what exactly are my tax dollars being used for again? Last i checked it was for the Conservatives to do more war spending. Ugh!

  6. Reginald

    But Rick, you do realize that software filers have existed for 2 decades now, right? Doing your taxes through things like uFile or Tax Studio are not only easy and quick but free. There is no excuse for not filing on time.

  7. Bryant

    Taxes are taxes. We as Canadians must pay our fair share or we are not citizens. I have taught my children the responsibility of doing taxes from an early age so that when they do get old enough they will start out right.

    I think paying your taxes on time and properly also is linked to proper money management. And helps keep responsible people out of debt better.

  8. Omari

    @judy that is great advice. To add to that people also forget that RRSPs should not treated as a piggybank for withdraws and for overcontributing. I made the mistake of doing this and paid dearly.

  9. Judy

    The same advice should also apply to those who think about overcontributing to their TFSA. CRA does not take kindly and will charge you a penalty on it. You will lose all your interest and the penalty is added on top. So be careful.

  10. The Amazing Rick

    I think the big reason people don't file is because of the excessive work to get all their receipts and stuff together.

  11. Jackson L.

    I still don't understand why people dont file. The act of doing this will net you some tax credits and GST/HST refunds that occur each quarter. So why not file?

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