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What should I do if I can't afford to pay the taxes that I owe?

Even when you know you can’t afford to pay your income tax, it is still extremely important to file your taxes by the annual deadline (April 30, 2017).

If you fail to file on time, the CRA will hit you with a late-filing penalty, which starts at 5% of the balance owing and increases by 1% every month to a 12-month maximum. This means you could owe an additional 17% of the original balance! If you were late filing your taxes in any the last three years, this amount is doubled.

Make sure you file your taxes on-time! If you cannot pay your balance, the CRA may be willing to accept a payment arrangement. You can learn more about the payment options on the CRA’s website: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/pymnts/rngmnts-eng.html

For more advice, contact a Calgary tax accountant.