CRA Interest Charges
The Canada Revenue Agency (CRA) charges interest and penalties on taxes that have not been paid. Find out everything you need to know about CRA interest charges
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CRA Interest Penalties
The Canada Revenue Agency (CRA) can charge significant interest charges on outstanding tax debt. These charges can add up very quickly, making it difficult to repay the full amount owing. The CRA can also charge penalties for tax debt that is not repaid on time, leading to an even larger amount owing. Therefore, it’s important that you deal with your tax situation quickly, to avoid paying large interest charges.
The CRA is very tough to negotiate with and the agency does not make it easy to remove interest charges and penalties. The agency wants the money that is owed to it and it will use its very strong collection powers to collect outstanding tax debt. It can also leverage these powers to ensure tax compliance.
Trust the team at Farber Tax Solutions to help resolve your tax situation.
- Our team of ex-CRA, legal, and accounting professionals will review your situation and determine the best course of action going forward
- We will communicate and negotiate with the CRA on your behalf, so you benefit from our knowledge and years of experience
- We offer a free consultation where you can discuss your situation with our tax experts at no charge
CRA Interest Charges
If you have a balance owing, the CRA begins to charge compound daily interest as soon as the balance is due. This results in a situation where costs can increase dramatically very quickly.
In addition to CRA interest charges, the agency also charges a late-filing penalty for returns that are not filed on time. Interest is also charged on the penalties starting on the day that the tax return is due.
What is the CRA interest rate? The interest rate charged can change every three months. The current prescribed interest rates are listed on the CRA website.
As the above shows, fines and penalties charged by the CRA will add up very quickly. Therefore, the sooner a tax situation is resolved, the lower the amount you are expected to pay. Contact Farber Tax Solutions today to discuss your tax problem and talk to our team of experts about how it can best be resolved. We offer you the best chance at successfully resolving your tax problem.
Having CRA Interest and Penalties Waived
CRA interest and penalties can potentially be waived through taxpayer relief provisions that exist for this purpose. However, to have interest and penalties cancelled, you need to apply and prove that you were unable to meet your tax obligations due to circumstances beyond your control.
These circumstances include natural or human-made disasters, civil disturbances, service interruptions, serious illness or accident, mental or emotional distress, processing delays, errors in processing, and other such situations. The CRA may also consider waiving or cancelling interest charges in the case of severe financial hardship.
Contact Farber Tax Solutions. We can provide you with expert advice on strategy, submit your formal taxpayer relief application, and handle all correspondence with the CRA going forward. Our expert team has a proven track record of successfully communicating and negotiating with the CRA. Trust us to navigate through complex CRA processes and resolve your tax situation in the most favourable way possible.
Farber Tax Solutions Helps You at Every Step of the Way including:
- 1| Organizing: We analyze all documents and communication, to fight the CRA on your behalf
- 2| Audits: We assist you with audits and ensure proper conduct by tax authorities
- 3| Appeals: We can prepare a Notice of Objection, clarifying your standing with the CRA
- 4| Litigation: We represent you at all levels of court