Behind in your taxes? There are remedies. You can do this!

by James Gustafson | Aug 24, 2020 | Taxation | 0 comments

What happens when you fall behind in filing your taxes? How can you catch up if you have not filed for a few years? Gustafson Accounting wants to help you figure out how to catch up on your filings when you are behind. We know that people are busy and that things can fall through the cracks. Life happens. At Gustafson Accounting we believe that it is never too late to seek help and that it is better to catch up sooner rather than later.

Here are some important things we think you should know when catching up on your filings.

How can I file overdue tax returns without facing any penalties?
- Remember that the ball starts out in your court, and that it is important to make the first move and reach out to CRA before they contact you. This process is called the Voluntary Disclosure Program established by the CRA to help people who are behind with their tax returns. The CRA recently made some changes to the Voluntary Disclosure Program in March of 2018, that make it more difficult for people to qualify without paying any penalties. The new system is not designed to reward individuals or corporations who intentionally or negligently avoided filing their taxes. Rather it is designed as a second chance for those who made a mistake or error unintentionally. If you fall into the latter category there is still a chance you can escape penalties for filing late. It’s up to the CRA though so you have to make your case and present your facts. We can help.
Can I get GST relief?
- There may be some limited relief available for GST filings as well. This is part of the CRA’s Limited Program, that applies to a situation where GST/HST was charged or collected but not remitted.
What are payment plans?
- If you are worried that you can’t afford to pay what you owe all at once, it is still better to contact the CRA before they come to you. This way you can negotiate a payment plan. They will take into account what you can afford, but keep in mind that you will need to be able to demonstrate your financial need.

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