If you’re the procrastinating type when it comes to your taxes, it’s time to get them done.
The deadline to file taxes is midnight tonight.
If you don’t get them filed and you owe money, you could be facing some steep penalties, and tax expert Evelyn Jacks says the penalties can add up fast.
“It’s the prescribed rate of interest, which is one per cent, plus four percentage points more. So it’ll be a full five per cent, compounding daily, which means it’s really expensive to owe the tax man money.”
What happens if you don’t have the money to pay what you owe to the Canada Revenue Agency? According to Jacks, it’s best to file them anyway and then figure out how to pay.
“Make a payment plan with the collections department at the CRA. If at all possible, don’t cash in your RRSPs because that’ll just give you a tax problem next year.”
If you don’t owe money, then technically you don’t have to file today, but it’s better for your wallet if you do.
“Remember that refund is sitting there waiting for you,” Jacks explains. “It’s not earning interest or other investment earnings if you leave it with CRA.”
The tax deadline is normally April 30, but since that fell on a weekend this year, it was pushed ahead.