CRA Penalty and Interest Calculator

Find out how much you owe the CRA and what you can do to repay your tax debt.

Fill out the web form or call us to get started.

1-888-868-1400

Solve Your Tax Problem

Book A Free Confidential Consultation

 

Calculating CRA Tax Penalties

 

If a tax return is filed late, or if taxes are not paid when they are due, the Canada Revenue Agency (CRA) will charge interest and penalties on the balance owing. These charges can add up very quickly, so many people find themselves looking for a tax penalty calculator to understand how much they will be charged.

If you owe taxes, there are several things to remember:

  • The CRA charges compound interest daily on outstanding tax bills
  • The interest rate charged on unpaid tax debt changes every three months and is posted on the CRA website
  • You will be charged a late-filing penalty if you do not file your tax return on time

Even if you cannot pay the amount owing by the due date, you should still file your tax return by the deadline, so that you will not have to pay a penalty for a late return.

If you have filed taxes late or if you owe tax debt, interest, or penalties, Contact Farber Tax Solutions to determine the best course of action to resolve your tax problem. We offer a free consultation with our tax experts.

 

How Much Does the CRA Charges for Late-Filing and Outstanding Tax Debt

 

If you owe money and do not file your tax return on time, the CRA charges a late-filing penalty of 5% of the balance owing plus 1% of the balance for each full month that the return is late, to a maximum of 12 months.

However, if you have been charged a late-filing penalty in recent years, the penalty increases. If you were charged a penalty in the last three years, the CRA will charge you 10% of your balance owing as a late-filing penalty and charge 2% each full month to a maximum of 20 months.

 

Resolving Tax Problems

 

Rather than spend time and effort with a CRA interest and penalties calculator, it is a better idea to spend this time working to resolve your tax situation. After all, since the CRA continues to charge interest and penalties the longer a tax debt remains outstanding, it is critical to resolve the situation as quickly as possible.

The expert team at Farber Tax Solutions is comprised up of ex-CRA, legal, and accounting professionals who have years of experience in successfully communicating and negotiating with the CRA. We will review your situation and provide you with guidance and expert advice every step of the way, giving you the most favourable outcome possible for your tax problem. Contact us today to book a free consultation.

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

Success Stories

"The power the CRA holds over individuals is unbelievable. I could not believe we had to experience this treatment and I firmly believe Scott saved the day, our sanity and our financial future. Farber Tax knows their stuff, and I highly recommend them to be in your corner."

"Again I can’t thank you enough! My life has been far more calm in so many ways after meeting with you. I have had many family members and friends mention how happy I seem lately. It’s truly a reflection of your hard work and ability to do your profession so great!”

"I don’t even know where to.begin or how to even thank you for lending an ear this morning. Without even seeing any type of documentation to support my situation .. you offered support, guidance and most of all kindness. THANK YOU from the bottom of my heart!!"