| Tax time is here for 2010. In Canada income tax | | | | file, for a maximum of 12 months. To avoid these |
| returns and any amount owing is due by midnight | | | | penalties filing on time is imperative regardless if |
| on April 30th. If you owe money this year and | | | | you can't pay right away. |
| don't have the extra funds to pay your debt to | | | | To continue on the topic of what happens when |
| Canada Revenue Agency, you are left wondering | | | | you can not pay your taxes, once Canada |
| 'what happens when you can not pay your | | | | Revenue Agency has reviewed your tax return |
| taxes?' You might be someone who just started | | | | you will receive a notice of assessment. On any |
| running a business and unexpected expenses | | | | balance left unpaid past April 30, daily compound |
| came up that used up your set aside tax savings. | | | | interest is charged. This interest is calculated |
| Maybe saving just doesn't seem like a possibility | | | | started on the filing deadline and until the balance |
| for you and your family or business. For | | | | owing is fully paid. The interest rate is can change |
| whatever reason it is not uncommon for one to | | | | every 3 months and is currently 5%. |
| be left with a balance owing to CRA that is bigger | | | | When you can not pay your taxes you owe to |
| than ones bank account can afford. Here is some | | | | Canada Revenue Agency it's important to contact |
| valuable information you should know when you | | | | a tax services office. There is a list available for |
| can not pay your taxes you owe to CRA. | | | | each of the provinces locations on the CRA |
| First of all you should still file your income tax on | | | | website. Letting them know your situation and |
| time even if know in advance you won't have the | | | | getting the problem sorted out as quickly as |
| money to pay the bill. Don't wait until you have | | | | possible is best. The tax services office will help |
| the funds to pay CRA before you file. The longer | | | | you arrange a payment schedule. There's not to |
| you put off filing your income tax the more you | | | | much to be anxious about when it comes to |
| will owe. When you file late you will be charged | | | | worrying about what happens when you can not |
| the late filing penalty. The late filing penalty is 5% | | | | pay your taxes, but it is best to take care of it |
| of the amount due plus another 1% of the | | | | as quickly as you can. |
| amount due for each full month that you didn't | | | | |