UNPAID TAXES AND PENALTIES ----- 5% CALULATED DAILY IF YOU OWED 10000.00 AND FILED YOUR INCOME TAX ON TIME THE INTEREST CHARGE WOULD AMOUNT TO 2.73 dollars A DAY ON UNPAID TAXES

Canada Revenue Agency



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Line 485 - Balance owing
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Line 485 - Balance owing

If your total payable (line 435) is more than your total credits (line 482), enter the difference on line 485. This amount is your balance owing. Generally, if the difference is $2 or less for 2013, you do not have to make a payment.


Only for the 2013 tax return

As a result of the five-day service interruption in April, the April 30 due date to file your tax return has been extended to midnight on May 5, 2014. Therefore, all individuals (including self-employed and their spouses or common-law partners whose returns are due on June 16, 2014) have until midnight on May 5, 2014, to pay any balance owing without interest and penalties.


propat

Got a feeling I am peep ..... seems like lots of people are getting wonderful surprises....

I owe $almost $26,000, filed before April and did not pay the amount owed.

Hope your right Duedrop. My case will tell.

If you file your income taxes on time YOU DO NOT PAY PENALTIES you will pay interest on amount of taxes due unless you get relief.

Same here, I paid the $35k before knowing if the 1198 will do any good, so the good ole GOC has my money and using it interest free for as long as they take doing my return, something says not to fair so no will stay leery of CRA. Hope they hurray up cause they have had my money for over a month now.

ya same here sapper as I said before they do grant some leniencies and don't charge interest as long as your return is in on time but I don't like to take any chances and payed by the deadline than no worries.

glad you did the same buds.

propat

Same math as me Propat. That is why I paid on May 1st...so I wouldn't get bit in the ass with penalties/interest/etc.
Sap

still not sure im getting the math. IF and I stress again IF they charge you interest its 5% of the outstanding balance on day one.

that's $500.00 on ten grand.

you go the whole month they will charge another 1% on $10,500.00

that's $105.00 for a total of $10,605.00 outstanding balance after one month.

interest charged $605.00

in a 30 day month that's $20.16 a day.

my line of credit is 4% annual and I think that's to high but not nearly as bad as the CRA if my bank changed my rate to the CRA,s rate I would consider it a huge slap in the face and change banks immediately.

propat

Bah Humbug.
If they have not done my T1198 and had it since March, how would I know how much to pay, or how much they should charge me!

Well when its all done, the Request for taxpayer relief will remove it it was lead to believe over the phone.

Compounded daily interest over 12 months would amount to $12.65 on the $10000 +5% interest.

Total interest + compounding interest  for 12 months would amount  $512.65 per $10000.00

If you owe taxes realize the CRA interests are lower than the best you can get at any bank ever!! A secure loan against a home will likely not be lower!

BE CAREFUL OF PENALTIES THEY ARE SCARY

Yes, I put that on line 232 , official required expenses of retired veteran, the I found out I could income split that with my spouse

Oh, I thought it was your Legion tab balance you wrote on the tax return Nav.

Lol, just write your legion membership number on the return and you will be taken care of, trust me I'm from Hamilton !

Nav CRA did not charge you any interest or penalties because you filed on time and the 1198 worked in your favor fortunately. I worry about those who filed late, did not pay their amounts owing and then 1198 does not work to their advantage. Not all tax returns will benefit from1198 as I can confirm for spouse.
Viva Las CRA!

If you owe that's compounded daily interest on that 5%, adds up very quickly!!

cheer's