Penalties and interest
Penalties and interest
Penalties
The CRA may charge a penalty if any of the following applies:
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You filed your return late and owe tax for 2024
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You failed to report an amount on your 2024 return and also failed to report an amount on your return for 2021, 2022 or 2023
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You knowingly, or under circumstances amounting to gross negligence, made a false statement or an omission on your 2024 return
The late filing penalty may be higher if the CRA issued a demand to file the return and assessed a late filing penalty on a return for tax year 2021, 2022, or 2023.
Interest on your balance owing
If you have a balance owing for 2024, the CRA will charge compound daily interest on any unpaid amount owing for 2024 starting the day after the balance is due. This includes any balance owing if the CRA reassesses your return.
Interest on your refund
The CRA will pay compound daily interest on your tax refund for 2024 in some situations. The calculation will start on the latest of the following three dates:
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the 30th day after the balance due date for the tax year
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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 gives 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 ended 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 2024 must relate to a penalty for a tax year or fiscal period ending in 2014 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 2024 must relate to interest that accrued in 2014 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:
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online using My Account, MyBA or Represent a Client
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by mail to the designated office for your province or territory of residence, as shown on the last page of Form RC4288
For information on the "Submit documents online" service, go to canada.ca/cra-submit-documents-online.
For details on 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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