4 Common CRA Penalties and How a Tax Lawyer Can Help You Avoid Them
When it comes to taxes, even small mistakes can lead to major headaches. If you have received a CRA penalty, you know how quickly things can escalate.
The Canada Revenue Agency (CRA) is known for issuing hefty fines, and these penalties can be difficult to manage without the right guidance. Whether it is for failing to file on time or neglecting to report all your income, CRA penalties can affect your financial future, this is where a skilled tax lawyer can make all the difference!
Understanding Common CRA Penalties
Keep reading to understand more about common CRA penalties and how taxpayer legal support can help you avoid them!
1. Penalty for Not Reporting Income
Failing to report all of your income is another major issue that can result in serious CRA penalties. Whether it is extra income from freelance work, rental properties, or even investment earnings, the CRA will penalise you if you fail to report it. The penalty for not reporting income can be severe and often leads to a larger tax bill.
If you have made this mistake, a tax lawyer in Toronto can help you amend your returns and negotiate with the CRA to reduce the penalty.
2. Failure to File Penalties
One of the most common CRA penalties comes from failure to file your tax returns on time. If you miss the deadline, usually April 30th, the CRA will charge you a late-filing penalty. The longer you wait, the higher the penalty climbs, and in some cases, it can be as high as 17% of the tax owed.
Taxpayer legal support can provide you with tax lawyer services that help prevent this penalty, whether by filing an extension or negotiating a reduction based on your unique situation.
3. Instalment Penalties
Many people do not realise that the CRA requires certain taxpayers to make periodic instalment payments throughout the year. If you miss an instalment payment or underpay, you will face an instalment penalty.
A tax lawyer in Toronto can assist in calculating the correct amount to pay each period, preventing any instalment-related penalties from arising. If you are already facing an instalment penalty, a tax lawyer can work with you to reduce or even eliminate the charge!
4. Penalty for False Statements or Omissions
Knowingly providing false information on your tax return or omitting details can result in significant penalties. The CRA takes tax filing seriously and penalties for false statements or omissions can include fines or even criminal charges.
Contact Us for Legal Guidance
If you find yourself in this situation, do not panic! A tax lawyer can help you correct any false statements or omissions, minimise penalties, and help avoid further legal trouble.
At Taxpayer Law, we specialise in helping individuals and businesses navigate CRA penalties and disputes. Our team of expert tax lawyers in Toronto offers the tax lawyer services you need to tackle even the most complex tax challenges.
Whether you are facing failure to file penalties, issues related to income reporting, or any other CRA penalty, we will guide you through the process, offering taxpayer legal support every step of the way!
Contact us today to chat with our team and learn more about our tax lawyer services.