The short answer is NO!  Not filing a tax return = tax evasion = crime.  There are consequences to not filing your taxes on time.

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Reasons why people don't file taxes on time:

•      They don’t think that they will owe, so they don’t file

•      They know they owe taxes and don’t have the funds to pay

•      They incorrectly believe that if they do not file they will not be found out and will not have to pay

•      They have lost records and/or receipts and have no idea or no record of what they earned, what their expenses were

•      They find dealing with their late tax filing so stressful once it has occurred that they think if they avoid it, eventually it will go away by itself

-       Not filing taxes on time can be considered a crime, so it’s critical to file your returns, even if they are late and even if you cannot afford to pay your taxes.

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Not filing taxes on time can be considered a crime, so it’s critical to file your returns, even if they are late and even if you cannot afford to pay your taxes.

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Consequences of late filing of tax returns:

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•      Late tax filing is a serious issue and should never be left unaddressed.

•      The CRA charges significant penalties and interest charges.

•      These charges continue to increase the longer you go without filing your returns, so if you owe a lot of money or if you have waited a very long time to file, the penalty for filing taxes late can be quite significant.

•      If you do not file your taxes by the deadline, the CRA immediately charges a penalty on May 1st as well as compound daily interest charges on any unpaid taxes.

•      If you have a balance owing and do not pay it, the CRA will also charge compound daily interest on any unpaid amount starting on the day after your return is due.

•      Even if you do not owe money, you could still be hit financially if you do not file your taxes.

•      The CRA will withhold your refund until you file and, even if you are not expecting a refund, there will likely be a delay in any government benefits you are expecting (such as GST/HST benefits or child benefits).

•      The penalty for filing taxes late is 5% of the tax year’s balance owing plus 1% of the balance owing for each full month your return is late, up to a maximum of 12 months.

•      Simply complete your taxes and send them in. If you owe tax or if you are charged a penalty by the CRA for late tax filing, you will be notified.

•      The longer you wait, the more difficult your situation will become. Whether your late tax filing is 1 year, 5 years or even 10 years past due, it is important to act and get compliant immediately.

•      In fact, you should still file your taxes even if you do not owe any money. Filing taxes late when you don’t owe Canada Revenue Agency any money is still a mistake.

•      Many benefits (such as the Canada Child Benefit) will not be paid to you if you do not file. You could be missing out on benefits that you are entitled to receive if you do not file.

•      If you’re behind filing your returns you should not simply go to a tax preparer and send in a batch of returns.

•      Once you are behind, you will need to deal with professionals who have a high level of experience and who can negotiate with the CRA for you to become compliant.

•      Late tax filing is a very serious tax problem that must be approached carefully. When filing past tax returns Canada Revenue Agency has a process that you should follow and programs that may make it easier to do so.

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