The Canadian tax deadline of 1 June has now passed. However, if you’ve missed the tax deadline don’t worry, you can still file your return and claim your tax refund.
In this guide, we will cover everything you need to know about filing after the tax deadline.
Can I file my taxes after the Canadian tax deadline?
Yes, filing late is better than not filing at all!
Every year thousands of people apply for their tax refund after the deadline has passed.
But even if you are not entitled to a refund, it is still very important that you file your documents as soon as possible.
I am due a refund. Will I be fined by filing late?
No, if you are due a refund, there will be no CRA penalty or fine for filing late.
If you worked in Canada in the past ten years, it is possible to claim a refund for these years.
However, it is good not to wait until the last moment because some refundable credits like the EI overpayment are limited to be claimed within 2 years after the end of the tax year.
It is quite possible you will be due a tax refund if you overpaid income tax, overpaid in the Canadian Pension Plan or overpaid employer insurance.
Most working holidaymakers are entitled to claim something back – so it’s definitely worth investigating how much you’re owed.
In fact, the average amount claimed is $998.
Even though there is no fine or penalty the sooner, you file the sooner you receive your money back into your account.
WHAT IS A CANADIAN INDIVIDUAL TAX NUMBER (ITN)?
I’m not entitled to a refund. Do I have to file my tax return?
If you owe money to the CRA, it is important that you file as soon as possible.
The CRA charges a late-filing penalty. If you owe tax for 2019, the penalty is 5% 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 by the CRA for 2016, 2017 or 2018 your late-filing penalty for 2019 could be 10% of the balance you owe.
2% is also added to your 2019 balance owing for each full month your return is late, to a maximum of 12 months.
If you failed to report an amount of income of $500 or more for a tax year, it will be considered a failure to report income.
Although the CRA are often understanding in cases where income is not reported and it is not unusual for penalties to be waived if you voluntarily disclose previously unreported income.
It is also important to note that even if you could not pay your full balance owing on or before 1 June, it is possible to avoid the late filing penalty by paying the amount you owe before 1 September.
Want to claim a tax refund from Canada?
What happens if I skip a year filing taxes?
If you skip a year of filing and do not owe any money to the CRA, nothing will happen. When filing, it is possible to claim back taxes for up to 10 years.
If you owe taxes to the CRA, you will be charged a late-filing penalty as mentioned above.
How long does it take to process previous year’s tax returns?
Most Canadian tax refunds are issued anywhere from two to 16 weeks depending on the type of return and when you filed it.
Of course, if the CRA are working through a backlog it will take longer for it to be processed.
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How do I file a late return in Canada?
Well, you can file your tax return yourself with the Canadian Authorities.
Alternatively, if you would like help with your tax return, you should contact a tax agent like Taxback.com.
Their team will handle all the tricky tax paperwork, ensure you are fully tax compliant and transfer your maximum refund straight to your bank account anywhere in the world.
The average Canadian tax refund is $998 – so it’s definitely worth claiming back what you’re owed.
- No complicated forms – a simple online process
- Your maximum tax refund guaranteed
- They send the refund straight to your bank account
- Their Live Chat team is available 24/7 to answer any of your tax-related questions
Want to claim a tax refund from Canada?