It is often tough for a person to understand what type of help he/she actually needs about tax. However, making the right decision in this regard is a must, and it worth to be careful.
The financials are something the needs management. And a general tendency in people is thinking that they can manage to deal with accounting requirements and calculate right. But there is another mistake they make – not filing personal tax.
Is it a great mistake?
What to do when anyone misses filing tax?
No to worry! Read this article to educate yourself for the time when you make this mistake.
Better to file late than never
Let me tell you that many overlooks fill one year and after that freeze the following year’s tax return for the previous mistakes.
This kind of procrastination can hurt you financially, in case you owe the government money. Using identifiers, such as your date of birth and your SIN to access data from your credit card or ban account transaction, the CRA (Canada Revenue Agency) can monitor your financial behaviour. If they notice your unattended tax return, you may end up owing penalties and interest.
So, it is best to notice it yourself before they do and contact the Canada Revenue Agency CRA to know any penalties you may have incurred. It is the best way to avoid the additional or worse financial issue by filing and paying off the outstanding balance. Sometimes the CRA excuses the penalties if the taxpayer comes and submits their application through VDP (Voluntary Disclosures Program). It is the form that gives a second chance to taxpayers to file missed returns and make corrections.
Interest and penalties for individuals
Here are the interest and penalties on balance owing when one pays or files taxes late.
The late tax-filling penalty is 5% of the previous year’s balance owing and an additional 1% for every full month (maximum 12 months) you want to file after the due date.
For complicated cases or to run the late tax filing smoothly, contact a tax professional.
An Tax Accounting Firm to contact
No worry if this happens. You can call a tax professional for assistance in personal tax filing. But make sure to contact the right company. Here you can count on Bomcas Ltd Accounting & Tax Services. Visit the website at https://bomcas.ca/ for further info.