I live in Ontario, what if I'm late two years in paying mt tax, but want to pay it this year?
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I didn't pay my tax for the past two years, total of 3000 CDN but this year I'm expecting an income tax return, so well they automatically deduct the amount owing, and what if I don't get an income tax return, well they send me a bill to pay everything including interest for not paying before, reason why I'm asking I don't want the fact that I'm two years late to kinda give me a problem in filing tax for this year, since I'm going to pay the entire amount owing before the deadline, so what well happen? thanks
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Answer:
If you have already been assessed for those two years and the balance owing on your CRA account is $3000, any refund from this or future years will be applied to this balance. If you have not yet filed or been assessed for the years that are late, send everything TOGETHER to CRA. The returns will be assessed in sequence, and a full statement showing your payments to date, the tax owing, penalties and interest will be sent to you.
angel6 at Yahoo! Answers Visit the source
Other answers
What will happen is the CRA will charge interest on first year of 1% per month to a maximum of 12 months or 12%. Check out the site below it will answer your questions.
wrighttax
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