4 ways not filing your taxes this year can cost you money, according to an expert
Canada's tax filing deadline is soon!
Canada tax return papers with Canadian money and a calculator.
Not doing your taxes can cost you money in ways you don't expect.
If you haven't filed your Canada taxes this year, you could be missing out on hundreds of dollars.
So, Narcity spoke with Gerry Vittoratos, a national tax specialist at UFile, to figure out the impacts on your wallet.
With the last day to file taxes on April 30, 2024, here's what you need to know about how not doing your return can cost you money.
No tax refund
"You will not receive your tax refund if one is owed to you," Vittoratos said.
That means you could be missing out on hundreds of dollars from the government through a refund by not filing your tax return.
No federal benefits
Vittoratos also noted that not filing taxes will cost you money because you won't get federal benefits even if you're eligible to receive them.
Many benefits and credits are tied to your tax return, including the Canada Child Benefit, GST/HST credit, Canada Carbon Rebate, Advanced Canada Workers Benefit, and Guaranteed Income Supplement.
"In order to receive these benefits on time, you have to file your tax return on time to give the proper time to the government to process the tax return," Vittoratos said.
Not filing means the Canada Revenue Agency won't know you're eligible to receive benefits and won't send you money.
Increased penalties and interest
You might think that not filing your taxes saves you money if you owe taxes to the government.
But that's not the case.
Even if you don't complete and submit your income tax return, penalties and interest will accumulate if you owe, Vittoratos revealed.
"If you have a balance owing, you will be subject to penalties and interest on the balance owing," he continued.
"The penalty for late filing is 5% on your balance owing and 1% additional for every month you are late."
Also, interest is charged on the balance you owe and it's now set at 10%.
Vittoratos recommended filing your taxes early if you think you're going to owe money since the deadline to file is also the deadline to pay your tax owing balance.
"it gives you the time to be able to amass the funds you need in order to pay your balance owing and avoid paying interest on any unpaid balance," he said.
No access to assets
Another way that not doing your taxes can cost you money is related to your assets.
Vittoratos noted that the government could freeze your assets including bank accounts.
That's meant to push you to file your tax return, according to the tax expert.
Of course, there are also more serious consequences associated with not doing taxes.
Vittoratos warned that you could be subject to criminal prosecution for tax evasion if you don't file your return. So, beware!
This interview has been condensed and edited for clarity.
This article's cover image was used for illustrative purposes only.
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