CRA Strike & Tax Season
Well, that was expected...the CRA staff are on strike, right in the last two weeks before the biggest deadline of tax season
Let's cut right to the chase: How will this affect YOU, the taxpayer?
If you E-file your taxes, whether on your own with one of the software packages out there, through the CRA website itself, or with a tax preparer, the timing of your tax return filing will not be affected.
If, on the other hand, you paper file your taxes, there will be a longer than usual delay.
While there are calls to extend the tax filing deadline, don't count on that happening. Get your taxes filed on time!
Here's a little primer, to remind you of the deadlines:
April 30th is on the weekend this year, so the actual filing deadline is May 1st.
If you owe money, get your return filed, and paid, on time. If you must paper-file (for whatever your reasons), get it in the mail and date stamped before the deadline.
If you are a sole proprietor (that is, a small business), your deadline to file is June 15, but your deadline to pay is still May 1st!
If you don't owe money, then your deadline is technically the same, but the CRA does not apply interest to money they owe you, so you can be late.
The key is the amount owing. According to the CRA website:
The late-filing penalty is 5% of your 2022 balance owing, plus an additional 1% for each full month that you file after the due date, to a maximum of 12 months.
Even if you know your taxes are going to be late, you can offset the penalty if you send the CRA money. Your tax preparer can give you an estimate of how much you might owe, even if your taxes aren't fully ready to file. That way, either you pay too much, in which case you will get the money back, or you have paid almost enough, which will keep your penalty low.
Talk to us if you need to get your taxes done - we're here to help!