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What happens if my tax return is submitted after April 30th, 2024?

Updated: Feb 11

Before we can answer that, it is important to understand your specific situation, because the deadline is not the same for everyone.

Taxpayers can be divided in two big groups:


Group 1: It is NOT declaring self-employment income (Neither you or spouse)

Group 2: It IS declaring  self-employment income (You or spouse)


Are you declaring self employment income?

You are declaring self-employment income if any of these situations happened in 2023:

  • Issued invoices during the year (independent contractors or small business owners - sole proprietors)

  • Received payments in cash/cheque for services provided without source deductions (outside a payroll).

  • Worked as ridesharing driver (Uber, Lyft, etc) or delivery driver (Uber Eats, Instacart, etc)

  • Received a T4A com um valor no box 48 (independent contractors)


Knowing this, please check below what are the consequences of submitting your tax return after April 30th, 2024.


Group 1: You are NOT declaring self-employment (neither you or spouse)

Late-fee penalty:

It will only be charged if you have a balance owing and your tax return is submitted after April 30th, 2024.

Interest:

Apply to amounts owed starting on April 30th, 2024.

If you do not have a balance owing, you will not be charged the late-fee penalty or interest.

Group 2: You ARE declaring self-employment (you or spouse)

Late-fee penalty:

It will only be charged if you have a balance owing and your tax return is submitted after JUN/15/2023.

Interest:

Apply to amounts owed starting on April 30th, 2024.

If you do not have a balance owing, you will not be charged the late-fee penalty or interest.

How much is the late-fee penalty?

The late-filing penalty is 5% of your 2023 balance owing, plus an additional 1% for each full month that you file after the due date, to a maximum of 12 months. However, if you submitted any of your tax return of 2020, 2021 or 2022 late, the late fee is doubled to 10% plus an additional 2% for each full month late.

Example: If you have a balance owing of $300, and file your taxes late (less than a month late) the penalty would be $15. If you have a balance owing of $1000, the penalty would be $50.


How much is the interest?

The interest is 10% per year starting from April 30th, 2024. (or 0.83% per month)

Example: If you have a balance owing of $300, and made your payment on May 30th, 2024, which is one month late, you will be charged $2.49 interest.

If you have a balance owing of $1,000, and made your payment on May 30th, 2024, which is one month late, you will be charged $8.30 interest.


Foreign property reporting

Individuals who own assets over than $100,000 outside Canada need to submit this declaration no later than April 30th, 2024. After this date, there is a penalty of $25 per day, up to 100 days. This penalty and deadline is the same for both groups.


Does the CRA system close after April 30th, 2024?

No. The CRA continues accepting tax returns as usual after April 30th, 2024.



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