Filing Late Tax Returns & Penalties For Late Tax Returns

If you do not pay your 2009 taxes on time or if there is a balance owing for 2009 on your Notice of Assessment, The CRA will charge compound daily interest starting May 1, 2010, on any unpaid amounts owing for 2009.

The penalty is 5% of your 2009 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. If you were charged a late-filing penalty on your return for 2006, 2007, or 2008 your late-filing penalty for 2009 will be 10% of your 2009 balance owing, plus 2% of your 2009 balance owing for each full month that your return is late, to a maximum of 20 months.