April 26, 2018

Personal Investor: Missing your tax deadline could get costly

In Canada, your taxes are due on April 30th. This is a hard deadline as far as the Canadian Revenue Agency (CRA) is concerned. Once it clocks over to midnight on May 1st, if you owe money then you’ll start to owe a lot more. You’ll automatically accrue 5 percent interest on your due payment, and it is compounded daily. It gets worse, as another percentage point is added each month up to a maximum of 12 months. After a year passes and if you still haven’t paid the CRA, then 10 percent interest is charged on the balance owing plus 2 percent for each full month, up to 20 months. You could see a small payment of $100 slowly balloon to thousands if you’re not careful.

Read more: Personal Investor: Missing your tax deadline could get costly

Ask Our Experts

Quadrant is dedicated to your financial success. Get expert advice and insights to grow your business and plan for your future.

Request a Consultation