What should you do if you missed the deadline for filing your tax return?

Missing the deadline for filing your tax return in Canada is stressful, but it's not the end of the world. The most important rule is to act immediately. Every day of delay can increase your financial losses due to penalties and interest, but timely action can minimize the consequences and help restore your tax status.

The Canada Revenue Agency (CRA) has established clear rules for late filing and has mechanisms in place to both penalize and assist taxpayers who find themselves in difficult circumstances. Understanding these rules and the options available to you will help you choose the best strategy for resolving your situation.

Consequences of missing the filing deadline

Penalties for late filing

  • 5% of the amount owed at the time the return is filed
  • 1% of the amount owed for each full month of delay (maximum 12 months)

Example: If you owe $3,000 and file your return 2 months late: 5% × $3,000 = $150 + (1% × $3,000 × 2) = $60 Total penalty: $210

Increased penalties for repeat offenders

  • 10% of the amount owed
  • 2% for each month of delay (up to 20 months)

Maximum penalty: up to 50% of the amount owed.

Interest on unpaid amounts

  • The CRA charges compound interest daily, starting on the day after the payment due date.
  • The interest rate is reviewed in the second quarter of 2025 — 8%.
  • Interest is charged on both the debt and the penalties.

Loss of benefits and credits

Late filing will result in delays or suspension of important payments:

  • Canada Child Benefit (CCB)
  • GST/HST Credit
  • Provincial tax credits
  • Old Age Security supplements

What to do immediately after missing the deadline

  1. File your return as soon as possible
  • Even if you cannot pay the debt immediately, file your return. This will stop the late filing penalty from growing.
  • The penalty is for filing late, not for paying late.
  1. Assess your situation
  • Use online calculators or CRA My Account to determine:
  • The exact amount you owe
  • Calculate penalties and interest
  • Find out if you are eligible for a refund
  1. Gather the necessary documents
  • T4, T5, other tax slips
  • Deduction receipts
  • Medical expenses
  • Charitable contributions
  • Investment documents

Options for filing a late return

Online filing via NETFILE

  • Returns via NETFILE are accepted even if they are late
  • Instant confirmation
  • Faster processing: 2–3 weeks (4–6 weeks for paper returns)
  • Fewer errors — automatic calculations

Professional assistance

  • Tax consultants/accountants:
  • Prepare your return with all allowable deductions
  • Assist with the CRA
  • Can apply for penalty waivers

Free tax clinics in Calgary

  • Carya Calgary (Bowmont Common: 403-286-1811, Village Common: 403-536-6558) — for low-income individuals, AISH and Income Support recipients
  • SAITSA (Heritage Hall, AA105) — free tax assistance for students and the community
  • University of Calgary Students’ Union
  • From qualified volunteers trained by the CRA
  • Email: [email protected]

Ways to pay your debt

Online payments

  • Online banking
  • My Payment service (canada.ca/cra-my-payment)
  • Pre-authorized debit payments (PAD)

In-person payments

  • At a bank or credit union (with a remittance voucher)
  • At Canada Post locations (with additional fees)

Payment plans

  • TeleArrangement Service: 1-866-256-1147
  • Debt Management Call Center: 1-888-863-8657
  • Required: SIN number, date of birth, amount from line 150 of your last tax return
  • Monthly payments can be arranged

Application for relief from penalties and interest

Form RC4288: Request for Taxpayer Relief

Grounds for relief:

  • Extraordinary circumstances (natural disaster, illness, death in the family, stress)
  • CRA errors or delays (incorrect information, errors in published sources)
  • Financial hardship (documented)

How to apply:

  1. Complete Form RC4288:
  • Personal information, account number
  • Details: type and amount of penalty/interest, reasons
  1. Attach documents:
  • Medical certificates, death certificates, police reports, financial statements
  1. Submit:
  • Online (My Account / My Business Account)
  • By mail to the tax center

Deadlines: no later than 10 years from the end of the year in which the fine/interest arose.

Voluntary Disclosure Program (VDP)

Who needs it

For those who have not filed a tax return for several years or have undisclosed income (self-employment, foreign accounts):

  • Protection from criminal prosecution
  • Cancellation/reduction of penalties
  • Possibility to register an installment plan

**Conditions:

  • Voluntary application before the CRA audit begins
  • Complete information on violations
  • Data — at least for the previous year

**VDP — two programs:

  • General Program: for most taxpayers — exemption from all penalties, partial reduction of interest, protection from criminal charges
  • Limited Relief: for intentional violators — protection only from criminal charges and penalties for gross negligence

CRA contacts in Calgary

Personal taxes: 1-800-959-8281 Mon–Fri: 8:00 a.m.–8:00 p.m. | Sat: 9:00 a.m.–5:00 p.m.

Business taxes: 1-800-959-5525 Mon–Fri: 8:00 a.m.–8:00 p.m.

Automated line: 1-800-267-6999 (24/7) TTY: 1-800-665-0354

Office: Alberta Tax Services Office 220 4th Avenue SE, Calgary AB T2G 0L1 Fax: 403-264-5843 No in-person service, drop box for documents available

Mail for tax returns: Canada Revenue Agency Winnipeg Tax Centre Post Office Box 14001, Station Main Winnipeg MB R3C 3M3

Tips to avoid future problems

  • Plan ahead: mark April 30 on your calendar, with a reminder one month in advance
  • Tax folder: collect documents throughout the year
  • Look for documents by March: if something is missing, contact your employers/banks in advance

Useful services:

  • CRA My Account — track the status of your returns and debt online
  • Direct deposit — to speed up refunds
  • Tax software — for fast and accurate filing

Professional help:

  • If the situation is complicated (rent, investments, self-employment), contact a tax advisor

Special cases

Self-employed individuals

  • Filing deadline: June 15, 2025 (actually June 16)
  • But taxes must be paid by April 30
  • Interest for late payment — from May 1

Capital gains tax returns for 2024

  • Filing by June 2, 2025: automatic exemption from penalties and interest
  • Filing after June 2: standard penalties and interest

Deceased persons

  • Filing deadlines may vary (depending on the date of death). For the latest information, contact the CRA.

Conclusion

Missing the deadline for filing a tax return in Calgary is serious, but not hopeless. The main thing is to act quickly: file your return even if you don't have the funds to pay the full amount. Evaluate all options (installment plans, tax amnesty, professional assistance, free clinics), and consult with the CRA. The sooner you resolve the issue, the less financial burden you will have — and the better you will sleep.