| Do you have overdue or late personal tax returns that | | | | If you owe money to the Canada Revenue Agency, |
| still need to be filed with the CRA? | | | | procrastination won't help to reduce the amount you |
| Don't wait any longer, and contact your local Canadian | | | | owe. In fact, interest will accrue at an annual rate of |
| accountant, as there are many advantages to | | | | 5% and penalties can amount to 17% or more. |
| catching up with the taxman. | | | | Therefore, if you owe money, please make sure that |
| This article addresses the top 5 reasons to file your | | | | you file your past due tax returns to minimize any |
| past-due or late tax returns: | | | | interest or penalties. |
| 1. Tax refunds by filing personal tax return | | | | 4. Applying for a mortgage or loan - late tax returns |
| In many cases, you may be eligible for a tax refund, | | | | hurt |
| which you can only receive by filing your tax return. | | | | When applying for a mortgage or loan, the bank will |
| A tax refund may result because of RRSP | | | | want to see your latest Notice of Assessment to |
| contributions made, child care expenses incurred, large | | | | verify your income. If you don't have that available, |
| amounts of taxes withheld from your paycheque, and | | | | because of overdue tax returns, you may be out of |
| many other reasons. | | | | luck for your next home purchase or loan. |
| In the 2009 year, many families are receiving a | | | | 5. Demand notice from the CRA for late, past due |
| one-time payment for the Ontario Transition Sales Tax | | | | tax returns |
| Credit, which is an Ontario tax give-away to | | | | The CRA will send a demand notice to file your |
| compensate tax payers for the increase in sales | | | | returns, followed by an "Arbitrary Assessment", if the |
| taxes to 13% as of July 1, 2010 (HST). | | | | returns aren't filed. An arbitrary assessment means |
| So make sure you file your late, past due tax returns | | | | that the CRA will assess your return based on the |
| to collect your tax refund cheque. | | | | information they have received, and will not provide for |
| 2. Canada Child Care Benefit and Universal Child | | | | any deductions that you may be entitled to. In other |
| Care Benefit | | | | words, an arbitrary assessment is the |
| The Universal Child Care Benefit ($100 per month per | | | | worst-case-scenario and results in an overstated tax |
| child) and the Canada Child Tax Benefit are only paid | | | | balance. |
| to those individuals have filed their tax returns. | | | | Additionally, the Canada Revenue Agency has the |
| Therefore, if you have children and haven't received | | | | power to garnish your wages for overdue tax |
| any UCCB or CCTB payments thus far, make sure | | | | balances, seize your bank accounts and even seize |
| you file your overdue tax returns. Likewise, CCTB | | | | your property. |
| payments may stop being paid to you if you have | | | | To make sure you don't end up in a situation where |
| past due tax returns. | | | | the CRA is confiscating your property, it's advisable to |
| 3. Minimize interest and penalties by filing late tax | | | | file your late, past due tax returns and seek the advice |
| return | | | | of an accountant. |