Dale Jackson

Personal Finance Columnist, Payback Time

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With hours to go before Monday’s 2015 tax filing deadline a BNN online survey found one in five respondents have not yet filed.

For those who owe, the meter is running. The penalty for filing late is five percent compounded daily plus one per cent for each full month the return is late, to a maximum of 12 months.

After 12 months the Canada Revenue Agency doubles the penalty to ten percent plus two percent each month, to 20 months.

With the Bank of Canada benchmark lending rate below one percent a ten percent penalty may seems harsh, but it’s an indicator of just how serious the CRA is when it comes to collecting its due.

People sometimes find themselves in lifelong struggles with the CRA that result in personal stress and financial hardship. It’s a hard battle to win considering the CRA has the full power of the law behind it. The CRA can impose liens on property and even charges that could result in prison time.

And it usually starts with neglecting to file. That’s why it is important for those with income to file something. Above all, the CRA hates to be ignored.

False statements or omissions can result in a penalty of $100 or 50 percent of the falsified amount, whichever is higher. Anyone who may have made such claims or statements can come clean any time through the CRA’s Voluntary Disclosure Program.

Taxpayer relief provisions are also provided for individuals who are victims of circumstances beyond their control.

If you feel it is too late to reach out to the CRA, tax professionals can help broker an arrangement both side can live with.