Have you filed your taxes for this year? Financial responsibilities just do not stop. Tax season may be over, but did you file your taxes? Canadians are required to file their taxes on a yearly basis. However, for various reasons, individuals as well as businesses, fall behind filing their tax returns.
Those who have not been diligent on record keeping may have lost receipts or haven’t kept track of what has been earned and spent, making the process of accounting and proving expenses difficult. Some may think they probably won’t owe and end up not filing. Inversely, some know that they will owe but do not have funds to pay. Whatever reasons may have contributed to falling behind filing your taxes, there are consequences to deal with.
The Long and Short of Filing Taxes in Hamilton
Filing your taxes late and not being able to file your taxes at all have different consequences. Repeated late filing results in increased penalties. Failing to file completely is against the law and is definitely something to avoid. Despite the knowledge that you won’t be able to afford paying off your taxes, being able to avoid the more severe consequences of not filing is the better choice.
It is imperative for taxpayers in Hamilton to file tax returns so as not to be faced with enforcement actions like garnishment of wages, seizures of bank accounts, or liens registered against properties. .
Owing money to the Canada Revenue Agency does not go against the law, but failing to file tax returns is. Tax evasion occurs when an individual or business intentionally ignores Canada’s tax laws. This includes falsifying records and claims, purposely not reporting income, or inflating expenses. Tax evasion is a crime.
Whether you’re cheating on your taxes here in Canada or hiding assets or money in foreign jurisdictions, the consequences are serious. Tax evasion has a financial cost. Being convicted of tax evasion can also lead to fingerprinting, court imposed fines, jail time, and a criminal record.
When taxpayers are convicted of tax evasion, they must still repay the full amount of taxes owing, plus interest and any civil penalties assessed by the CRA. In addition, the courts may fine them up to 200% of the taxes evaded and impose a jail term of up to five years.
Failure to file on time or to file at all may also result in the termination of your government benefits such as (CCTB, OAS, CPP, GIS). Paying for living expenses can already be difficult when you barely have anything to live on and worrying about your fines and increasing interest charges just adds to the stress of it all.
Managing Your Tax Debt
Money problems don’t go away by themselves, and sweeping your tax debt issues under the rug can get out of hand if you don’t get a grip on it early on. Because of the mandatory compliance and self-assessing nature of the tax system employed by the CRA, some people think they can get away with filing their tax returns late or not at all.
Being a very powerful government agency though, penalties are strictly charged on the first of May if taxes are not filed before the designated deadline.
There are various methods and steps to getting back on the road to being debt free. The path may not always be clear cut which is why consulting a Licensed Insolvency Trustee is beneficial. Different situations pose varying challenges, and it can be hard to discern which solution will be best for you, your capacity to pay, and your continued expenses moving forward.
Understanding the penalties, relief provisions, and the nitty gritty in between can get overwhelming. Allow us to make getting back on track financially much simpler for you by eliminating the burden of feeling alone and helpless.
We understand that you may not have filed your tax returns earlier because of what you think or know for sure that you owe. It’s not too late to get things corrected and on the right path.
When you find a Licensed Insolvency Trustee, you can get an in-depth breakdown of your options and how to best handle your financial affairs.
We hope you enjoyed reading this article “Have you filed your taxes for this year?” If you have any questions please contact us and BOOK YOUR FREE NO OBLIGATION JUDGEMENT FREE CONSULTATION TODAY!