Why Should You File all Your Taxes up to Date?
It is important to be up to date in your filings, especially if CRA has arbitrarily assessed your overdue taxes, which doesn’t usually favour the taxpayer. A filed return often reduces this arbitrary assessment. Those who owe taxes but have not yet filed will have to pay needless late penalties and interest. Those entitled to a refund, GST credits, and Child Tax Credits will not receive them unless a return has been filed and assessed by CRA. Further, a taxpayer who files more than one year late may lose tax-free benefits, such as Child Tax Credits. This works for the provinces and territories as well. For example, B.C. Sales Tax Credits are not payable after three years. Now, contrary to what you may have heard, you may not be required to file every year. If you don’t owe, are not entitled to any money back, or have not been a resident of Canada for over a year, you may fit into this category. You can find out what years need to be filed by calling CRA at 1-800-959-8281.
Let us at ensure that your tax filings are on time every year and free yourself of the worry that your returns and filings will not be on time.