Missing a tax deadline can feel overwhelming, especially if you’re not sure what happens next or how serious it is. The good news? Missing a deadline doesn’t automatically mean you’re in trouble forever, but it can lead to penalties, interest, and unnecessary stress if it’s not handled properly.
Whether you’re an individual, self-employed, or a business owner, here’s what you need to know if you miss a tax deadline in Canada, and what to do next.
First Things First: Which Deadline Did You Miss?
Not all tax deadlines are treated the same. The consequences depend on what you missed.
Common CRA Deadlines Include:
- Personal tax return (T1): Typically due April 30
- Self-employed personal return: Filing deadline is June 15, but any balance owing is still due April 30
- Corporate tax return (T2): Due 6 months after your fiscal year-end
- GST/HST filings: Monthly, quarterly, or annually depending on your setup
- Payroll remittances: Monthly or more frequently for some businesses
Missing any of these can trigger penalties and interest.
What Happens If You File Late But Don’t Owe Money?
If you don’t owe the CRA any money, the consequences are usually minimal.
- There is no late-filing penalty
- You may experience delays in receiving refunds or benefits
- The CRA still expects you to file — even years later
That said, filing late repeatedly can raise red flags, so it’s always best to stay current.
What Happens If You File Late and Owe Money?
This is where things get more serious.
Late-Filing Penalty
If you owe taxes and file late, the CRA charges:
- 5% of the balance owing, plus
- 1% per month for up to 12 months
If you’ve been late before, penalties can be even higher.
Interest Charges
On top of penalties, the CRA charges daily compound interest on any unpaid balance until it’s fully paid.
This means even a small amount can grow quickly if ignored.
What If You Can’t Pay Right Away?
Not being able to pay is more common than people think — and the CRA would rather work with you than chase you.
If you file your return but can’t pay the full amount:
- You can set up a payment arrangement
- Interest will still apply, but penalties may stop
- Avoiding filing altogether usually makes things worse
The key is communication and action.
What If You Don’t File at All?
Failing to file entirely can lead to:
- CRA estimating your taxes (often higher than reality)
- Loss of benefits or credits
- CRA collection actions such as wage garnishments or bank freezes
Even if you’re multiple years behind, filing voluntarily is almost always the better option.
Can You Reduce or Eliminate Penalties?
In some cases, yes.
The CRA offers Taxpayer Relief (also called fairness relief) for situations like:
- Serious illness or personal hardship
- Natural disasters
- CRA processing errors
- Financial distress
Each case is reviewed individually, and having professional support can make a big difference.
What Should You Do If You’ve Missed a Deadline?
If you’ve missed a tax deadline, here’s what to do next:
- Don’t panic
- File as soon as possible — even if you can’t pay
- Gather your documents
- Get professional advice if you’re unsure or behind multiple years
The sooner you act, the more options you have.
How Me Consulting Inc. Can Help
At Me Consulting Inc., we help individuals and business owners:
- Catch up on late or missed filings
- Communicate with the CRA on their behalf
- Set up payment arrangements
- Reduce stress and uncertainty around taxes
If you’ve missed a deadline — or think you might — you don’t have to handle it alone.
Reach out to our team today and let’s get you back on track.
