One of these benefits is the Goods and Services Tax (GST) refund. Canada adopts a progressive tax system, under which the low and mid-income earners get tax benefits and cash benefits. Then why file returns? Because the Canada Revenue Agency (CRA) uses income tax returns to remain updated about your age, income, family, and marital status. Late or insufficient payments are also subject to interest currently at a rate of 5% (subject to change on a quarterly basis).Do you know it is important to file your income tax returns, whether you earn any income or not? You don’t pay any tax for income below $13,000 ($1,100/month) as that is the basic personal amount the CRA believes an individual needs to meet daily needs. In total this means you could be assessed a 17% (5% + 12%) penalty on the balance owing on your return. For every full month your return is late you’ll be assessed an additional 1% penalty up to a maximum of 12 months. If your personal income tax return is filed late (even by a day) you’ll automatically be assessed a 5% penalty on the balance owing. Final Thoughts and CRA Late Filing Penalty Reminders Remember: Your transaction total is subject to your daily or weekly limit as determined by your financial institution.Only BMO, Scotiabank, RBC, TD, Envision Financial, and Libro Credit Union support the My Payment function.Use the CRA’s My Payment service to pay with your debit card through Interac® Online.Option 2: Debit card – Interac® Online (My Payment) We recommend checking to see if you can add the CRA as a bill payee in advance to confirm that your financial institution supports the service. Some financial institutions (specifically those outside the Big Five Canadian banks) may not support online payments.The payment may take two to three days to be processed so make your payment in advance to ensure timely receipt.Be sure to enter your account number (your social insurance number) carefully to avoid a lost or misapplied payment.Under add a (bill) payee, look for CRA (revenue)-(2014)-tax owing.Sign in to your financial institution’s online banking service.For your convenience, here is a “How To” guide outlining two online payment options available to you. If you have a balance owing to the Canada Revenue Agency (CRA), we recommend that you pay electronically.

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