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What should I do if I can’t afford to pay the taxes that I owe?

Regardless of how much you can afford to pay the CRA, you need to make sure your taxes are filed by the deadline (April 30. 2017).

This will ensure that you don’t incur any late-filing penalties, which can end up totalling 17% of the original balance by the end of the first year. This total comes from the 5% late filing penalty plus 1% for each month. This late-filing penalty is doubled if you have any received late-filing penalties for the preceding three years.

After you have filed your taxes and tried but failed to get the funds necessary to pay your outstanding balance, the CRA may accept a payment arrangement. You can find out how to set this up on the CRA’s website: http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/pymnts/rngmnts-eng.html

Get the latest advice about taxes from the best accountant Calgary has to offer.