Missing tax deadline definitely bad luck

Q – What happens if I miss the tax-filing deadline? – Susan H., Uxbridge, Ontario

A – The tax-filing deadline for your 2011 tax return is on or before April 30, 2012. If you’re self-employed, your return for 2011 has to be filed on or before June 15, 2012. However, if you have a balance owing for 2011, you still have to pay it on or before April 30, 2012, whether you’re self-employed or not.

If you owe Canadian income tax and file your Canadian income tax return after the deadline, the Canada Revenue Agency will charge a penalty of 5% of the balance owing and 1% of the balance owing for each full month that your return is late, to a maximum of 12 months. Depending on what you owe, this can be serious money.

You do not want to get into a situation where you owe the government taxes. Always file your tax return on time. And pay in full any amounts owing. If you owe money and think you can’t pay it in full, talk to your financial or tax advisor immediately. – R.T.

Robyn Thompson, CFP, is the founder of Castlemark Wealth Management, a boutique financial advisory firm, specializing in customized financial, investment, insurance, and retirement planning. Phone 416-828-7159 or email today to rthompson@castlemarkwealth.com for a no-obligation, no-charge Castlemark Integrity Financial Planning consultation.

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The foregoing is for general information purposes only and is the opinion of the writer. No guarantee of investment performance is made or implied. It is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice. Please contact the author to discuss your particular circumstances.