What penalties and interest does CRA charge?
If you owe tax for 2008 and do not file your return for 2008 within the dates CRA specifies they will charge you a late-filing penalty. The penalty is 5% of your 2008 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months. Your late-filing penalty may be higher if we charged you a late-filing penalty on a return for any of the three previous years. Tax Tip: Even if you cannot pay the full amount you owe on or before April 30, 2009, you can avoid the late-filing penalty by filing your return on time. CRA may waive or cancel this penalty (as well as any interest that may apply) if you file your return late because of circumstances beyond your control. You may have to pay a penalty for any amounts you fail to report on your return for 2008. If you also failed to report an amount on your return for 2005, 2006, or 2007, you may have to pay another penalty. Interest If you have a balance owing for 2008, we charge compound daily in
