How to File Back Taxes in Canada

Worried that you missed the last day to file taxes Canada? Want to know how to file back taxes Canada? Here is everything you need to know about filing back taxes and the last day to file taxes in Canada.

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The Last Day to File Taxes in Canada and How You Can File Prior Year Returns

 

If you’re curious about when the last day to file taxes Canada is, for most people, the deadline to file 2018 income taxes is April 30, 2019. This is true for nearly anyone who files personal income taxes. However, if you are self-employed, you have until June 15 to file your returns. That being said, if you have a balance owing on your taxes, you’ll still need to pay it on or before April 30 to avoid penalties and interest.

If the tax due date falls on a weekend or public holiday, your return is considered on time if it is filed the next business day.

Filing your tax return on time is important, even if you are unable to pay the tax debt that you owe. This is because the CRA charges a late filing penalty if you file after the due date. In addition, you will also be charged interest on the outstanding debt that you owe.

However, some people have not filed previous year tax returns. In some cases, this is because they knew they owed money and did not want to file for this reason. In other cases, it’s because they forgot or did not know that they needed to file a return. Whatever your reason for missing the last day to file taxes Canada, or not filing your returns at all, it’s a good idea to file them as quickly as possible. Due to this, you’ll need to know how to file back taxes in Canada.

 

Filing Back Taxes in Canada

 

The longer you wait to file your taxes, the more money you will owe when you do. The CRA will not forget about you. The agency will eventually realize that you have not filed, and you will be charged penalties and interest charges on the unpaid debt.

Even if you do not owe money, you will still want to file. You might be entitled to a refund and not filing can cause you to miss out on certain federal payments such as the Canada Child Benefit.

If your returns are less than a year overdue, filing back taxes in Canada is quite simple. You can file your returns as you usually would. However, if your return is more than a year overdue, there is a Canada Revenue Agency program that may help you. This program is called the Voluntary Disclosure Program (VDP).

The VDP is designed as a second chance to correct prior year returns or to file returns that have not been filed when they should have been. If you file through this program, the CRA may charge you only the tax debt you owe plus interest, so you could potentially avoid paying a late filing penalty. This means that knowing how to file back taxes in Canada through this process can save you quite a lot of money, depending on how late your returns are.

However, the disclosure must be voluntary. This means you will need to file through the VDP before the CRA contacts you about your late returns.

When you do, it’s important to get this process right. Working with a professional can give you the best chance of your VDP application being accepted.

If the CRA has already contacted you about filing back taxes in Canada, you should speak with a tax professional right away. An expert on our team can help you handle CRA agents, communicate effectively with the CRA, and work to resolve your tax issue. Contact us today for more information.

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