As we enter April there is something other than April Fools Day and the Easter long weekend that we need to look forward to. Tax deadline day!!! April 30, 2021 needs to be marked in the calendar of every individual taxpayer, whether you were a full-time employee, part time employee, received government benefits or just sat on the couch all year doing nothing. A tax return is absolutely essential. A late filing penalty of 5% plus 1% for every full month you are late in submitting the return (up to a maximum of 12 months) will be applicable and if this is not the first time you have missed the deadline, the penalties are double. Furthermore, arrears interest of 5% compounded daily will also be charged for any unpaid amounts starting May 1, 2021 (this rate can change every 3 months, see prescribed interest rates). Some relief on this interest is provided by CRA if all of the following apply:

1)    Your total 2020 taxable income was less than $75,000.00

2)    You received at least one COVID-19 benefit in 2020

3)    You filed your 2020 income tax return on or before April 30, 2020.

If this applies to you, CRA will not charge any interest on taxes owing until April 30, 2022. This relief only applies to taxes owing for the 2020 tax year.