Penalties and interest
Penalties
The CRA may charge you a penalty if any of the following applies:
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You filed your return late and you owe tax for 2023
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You failed to report an amount on your 2023 return and you also failed to report an amount on your return for 2020, 2021 or 2022
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You knowingly, or under circumstances amounting to gross negligence, made a false statement or an omission on your 2023 return
Interest on your balance owing
If you have a balance owing for 2023, the CRA will charge compound daily interest starting May 1, 2024, on any unpaid amount owing for 2023. This includes any balance owing if the CRA reassesses your return.
Interest on your refund
The CRA will pay you compound daily interest on your tax refund for 2023 in some situations. The calculation will start on the latest of the following three dates:
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May 30, 2024
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the 30th day after you file your return
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the day you overpaid your taxes
Cancel or waive penalties and interest
The CRA administers legislation, commonly called taxpayer relief provisions, that allows the CRA the discretion to cancel or waive penalties and interest when taxpayers cannot meet their tax obligations due to circumstances beyond their control.
The CRA's discretion to grant relief is limited to any period that ends within 10 calendar years before the year in which a relief request is made.
For penalties, the CRA will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year in which you make your request. For example, your request made in 2023 must relate to a penalty for a tax year or fiscal period ending in 2013 or later.
For interest on a balance owing for any tax year or fiscal period, the CRA will consider only the amounts that accrued during the 10 calendar years before the year in which you make your request. For example, your request made in 2023 must relate to interest that accrued in 2013 or later.
Taxpayer relief requests can be made online using the CRA's My Account, My Business Account (MyBA) or Represent a Client digital services.
You can also fill out Form RC4288, Request for Taxpayer Relief - Cancel or Waive Penalties and Interest, and send it to the CRA online using My Account, MyBA or Represent a Client, or by mail to the designated office shown on the last page of Form RC4288.
For information about how to submit documents online, go to canada.ca/cra-submit-documents-online.
For details about the required supporting documents, relief from penalties and interest, and other related forms and publications, go to canada.ca/penalty-interest-relief.
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