News Column

Tax Tip: Enjoy the Benefits of Filing on Time and Online!

Mar 13 2013 12:00AM

Marketwire

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OTTAWA, ONTARIO -- (Marketwire) -- 03/13/13 -- Did you know?

Filing your tax return and paying what you owe on time helps you avoid possible interest and penalty charges, and ensures that your benefits won't be delayed. Filing online is the fastest and easiest way to send your return and get your refund and benefit payments even faster.

What happens if I don't file on time?

When you file your yearly tax return, you are letting the CRA know your current tax situation. Without that information, the CRA can't be sure that you are still eligible to receive certain benefit payments. If you don't file on time, your benefit payments (for example, Canada child tax benefit and GST/HST credit) may be interrupted.

Also, if you have a balance owing and don't file your return on time, you will be charged a late-filing penalty. The penalty is 5% of your 2012 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. If we charged a late-filing penalty on your return for 2009, 2010, or 2011, your late-filing penalty for 2012 may be 10% of your 2012 balance owing, plus 2% of your 2012 balance owing for each full month that your return is late, to a maximum of 20 months.

In addition to the late-filing penalty, if you have a balance owing for 2012 you will be charged compound daily interest beginning May 1, 2013, on any unpaid amounts owing for 2012.

Even if you cannot pay all of your balance owing right away, you should still file your return on time and call us at 1-888-863-8657 to make a payment arrangement. By filing on time, you will avoid the late-filing penalty.

Important Facts

-- You have until midnight on April 30, 2013, to file your 2012 income tax and benefit return.-- If you or your spouse or common-law partner is self-employed, you have until midnight on June 17, 2013 to file your return. Any balance owing must be paid by April 30, 2013-even if your return is due June 17, 2013.



Why should I file online?

When you file your return online, you'll get your refund faster. When you file online and sign up for direct deposit, you may receive your refund in as little as eight days! For information on how to request direct deposit, go to www.cra.gc.ca/directdeposit.

Filing online is fast and easy. Certified software packages and Web applications (some of which are free to use) guide you through the process, ensuring you don't miss out on credits and benefits for which you may be eligible.

If you are already filing your return online, you no longer need a web access code. Instead, all you need is your social insurance number and date of birth.

Filing online is secure. The CRA uses the same high level of online security used by Canadian financial institutions.

Stay connected (www.cra.gc.ca/socialmedia)

To receive updates when new information is added to our Web site, you can:

- follow the CRA on Twitter - @CanRevAgency;

- subscribe to a CRA electronic mailing list; and

- add our RSS feeds to your feed reader.

You can also watch our tax-related videos on YouTube.



Contacts:
Noel Carisse
Media Relations
Canada Revenue Agency
613-952-9184





Source: Marketwire


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