I just didn’t get around to it this year… Maybe next year… It’s not a big deal, right?
Failure to file your tax returns on time is a “big deal” AND can cost you extra money in the long run!
File your tax returns on time because:
- It’s the law – the only exemption is if you have absolutely no taxable worldwide income.
- If you file late and then end up owing tax, you will have to pay a penalty AND interest on the balance owed. For a first offense, you pay 5% of the balance owing plus 1% for each full month that the return is late (to a max of 12 months). If you filed late in the last 3 years, this penalty doubles, meaning that you could owe up to 50% of the tax owed on your return plus interest.
- You might be eligible for tax benefits and other credits once you file your taxes – take advantage of these perks!
- You earned tax credits while you were a student and/or medical resident – these can be carried forward to reduce your tax in future years or can be transferred over to your parents or spouse (up to a prescribed maximum). Learn more about Tuition Tax Credit.
Don’t wait for the Canada Revenue Agency to contact you – at Tucker’s, we help medical doctors and dentists minimize taxes and maximize opportunities!
Learn about our Tax Planning services here.