Jacks mentions: … important provisions like refundable tax credits, CPP and EI overpayments and correct applications of capital loss balances, RRSP contribution room and other carry forward amounts. Late filers should also remember they will be missing out on a number of social benefits. She suggests filing anyway to avoid late filing penalties, steadily compounding interest or possible costly gross negligence or tax evasion penalties. The message that payment arrangements can be made is even more important for those who have not filed yet, Jacks say - perhaps out of fear of a balance due for which there is no money. If you can, avoid taking the money out of an RRSP, as this will just cause a tax problem next year. CRA expects you to show first that you have tried to to deal with the debt on your own by tapping into your savings, for example. Do take up CRA’s invitation and make arrangements to pay over time to avoid the daily interest compounding charges at the current 5% prescribed rate. Jacks: Avoid temptation to raid RRSP Here’s what Evelyn Jacks, author of Essential Tax Facts and president of The Knowledge Bureau, says about late filing: It’s always better to be proactive about the amount of taxes you pay however if you find yourself owing and short of cash flow at the same time, it’s important not to sit on the problem. This advertisement has not loaded yet, but your article continues below.
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