As of Wednesday, April 19, 2023, Canada Revenue Agency (CRA) employees are on strike – 13 days before the 2022 tax filing deadline. With this disruption to the Federal Government’s system, our tax team answers your questions, and how to ensure your taxes are filed on time.
Is the Tax Filing Deadline still May 1, 2023?
Yes! There has not been any changes to the filing deadline at this time. With the majority of tax returns now being filed electronically, our tax advisors do not suspect there will be an extension granted.
If you are late filing your taxes and have a balance owing you will be charged a late-filing penalty fee.
If you are self-employed the filing deadline is still June 15, 2023. (But if you owe any taxes, these still must be paid by May 1, 2023)
What if I File My Taxes Late?
If you file your taxes after May 1, 2023, you will be charged a late-filing penalty fee.
This fee is 5% of your 2022 balance owing, PLUS an additional 1% for each full month that you do not file after the due date, up to a maximum of 12 months.
Important! In certain circumstances the late penalty can be doubled, so you DO NOT want to make a habit of filing late.
Do I Still Have to Pay Balances Owing by May 1, 2023?
Yes! No extension has been granted, so if you have a balance owing after filing your 2022 tax return, pay this by May 1, 2023, to avoid arrears interest.
If you do not pay balances owing by May 1, 2023, the CRA will charge you interest. Interest is compounded daily at the CRA prescribed interest rate for balances owing on 2022 tax returns. The current rate of interest charged by the CRA is 9%!
It is recommended balances owing are paid online, or directly at your bank using a payment slip. If you pay your balance by cheque it will very likely be delayed and not processed on time, resulting in the CRA charging interest on your balance owing.
Will I Still Get My Tax Refund?
Did you know? If the CRA owes you a refund, and you file on time, you will receive 7% interest on your refund, compounded daily, starting on May 31, 2023, if you have not received your refund by May 30, 2023.
*If you file late, are entitled to a refund, and have not received the refund 30 days after your file date, the CRA will start paying you interest.
Can I Still Contact the CRA?
You should suspect that any communication with the CRA will be delayed, or in some cases not available. The CRA is prioritizing calls related to benefit payments, but expect increased wait times.
Canadians are encouraged to use the CRA’s online support services to address their questions and concerns.
If you require assistance, connect with us in Alberta, British Columbia, Northwest Territories, or the Yukon.
This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual tax needs. This publication is not a substitute for obtaining personalized advice.
If you are looking for Tax Services, Crowe MacKay provides personalized support. Our tax professionals will help you maximize tax-planning opportunities and ensure the minimum amount required by law is paid.