Filing income tax returns late may result in penalties and interest from the Canada Revenue Agency (CRA). This guide covers CRA late-filing penalties, including the penalty and interest rate, consequences for late tax filers, repeat offences, and penalty relief.  Deadline for Filing Tax Returns and Extension Most individuals are required to file their tax returns by April 30. Self-employed taxpayers have until June 15 to file their returns, but any balan…

If a taxpayer accidentally over-contributed to an RRSP or TFSA, the taxpayer may face a significant penalty tax from the Canada Revenue Agency (“CRA”). Fortunately, there is a process to request a waiver of over-contribution tax.  Understanding RRSP and TFSA Over-Contribution Penalties Over-contribution tax applies when a taxpayer contributes more than their available contribution room. The CRA imposes a 1% tax on the highest excess amount for each month…

Over-contributing to a Tax-Free Savings Account (“TFSA”) can trigger unexpected taxes and penalties from the Canada Revenue Agency (“CRA”). This article explains what a TFSA over-contribution is, outlines its limits, and offers strategies for avoiding one. What Is a TFSA Over-Contribution? A TFSA over-contribution occurs when a taxpayer contributes more to a TFSA than their contribution room allows. Every Canadian aged 18 and over accumulates TFSA contributio…

This article explains the normal reassessment period found in section 152 of the Income Tax Act (Canada) (“ITA”), its timelines, key exceptions, and rights of a taxpayer disputing a reassessment. CRA Normal Reassessment Period The Minister of National Revenue (the “Minister”) can reassess a tax return as of right within the normal reassessment period to adjust income, deductions, or tax payable. For individuals (T1 returns) and Canadian-controlled private cor…