4 Basic Penalties for Filing Late GST/HST

by | Jun 3, 2022

Do you own a business in Mississauga? If yes, then follow the rules by Canada Revenue Agency (CRA) to file your GST/HST return. You must collect the GST or HST from your clients after incorporating your business. You also need to review your books on daily basis in case you forget the deadline for submission. You need to bring this money back to the government so they can use it to pay for things like health care and roads. Still confused? Don’t panic! Our corporate tax professionals at Yogi & Associates will help you to avoid penalties for late submission of GST/HST

Failure to file GST/HST made by your business is a major issue. In this case, the CRA will charge penalties according to the deadline. So, it is important for an entrepreneur to avoid these penalties. It’s better to work with a corporate tax professional to ensure CRA has accepted their returns. Also, our team will keep your bookkeeping records updated. This way you won’t miss the deadline. We’ll make sure you’re claiming all the deductions, credits, and rebates you’re entitled to.

Failure to file GST/HST made by your business is a major issue. In this case, the CRA will charge penalties according to the deadline. So, it is important for an entrepreneur to avoid these penalties. It’s better to work with a corporate tax professional to ensure CRA has accepted their returns. Also, our team will keep your bookkeeping records updated so you won’t miss the deadline.
Our corporate tax professionals in Mississauga are here to explain all the GST/HST rules and regulations. We’ll make sure you’re claiming all the deductions, credits, and rebates you’re entitled to.
GST/HST

1. Cost for filing late GST/HST

Fail to submit for late GST/HST

If you fail to submit your GST/HST on the time, CRA will charge your company with a penalty. The calculation of this penalty is:

A+ (B*C)

A = How much you earn
B = 25 percent of A
C = The total number of full months the return is past due, up to 12 months.

For Instance:

1% of 30,000 = $300
(25% of $300) * 8 = $600
$300 + $600 = $900 penalty.

Demand to file

If CRA demands you to submit general sale tax and you fail to submit it, then, CRA will give you a penalty to raise $250.

“Make sure you pay your taxes; otherwise you can get in a lot of trouble.”–Richard M. Nixon

Fail to submit electronically

The CRA will penalize you $100 for the first time you fail to file your GST/HST online. The fine will rise to $250 for a next failure to do so.

Fail to file correct information

If any of the following apply, CRA may assess a penalty of up to 10% (5% of the amount in question + 1% of the difference between what was stated and what should have been stated):

  • You fail to provide correct information
  • You fail to provide the information of amounts correctly, i-e, over/under-reporting of charges (over-reporting of loss and under-reporting of profits)
  • You fail to provide correct information of amounts by mistake

2. Interest on late submission of GST/HST

The CRA will charge you GST/HST return interest if you are paying it late. So, two types of interest apply on GST/HST depending on the debt. Well, let’s discuss the situations when you have to pay the interest.

Arrears Interest

The CRA will charge you interest on your account every three months, using the daily compounded interest rate.

Installments Interest

If you fail to make your payment by the dead line, the CRA will charge you 4% plus the yield on a 90-day Treasury note.
GST/HST

3. Refund Interest

There are the charges applied on the late/unpaid GST/HST return or outstanding/overdue debts. But there is a benefit for those who has a refund. They will get the refund interest.
Once you file your claim, the CRA must pay you daily compounded interest on refund. When you receive your refund, the CRA calculates your received interest.

“All taxes discourage something. Why not discourage bad things like pollution rather than good things like working or investment?”–Lawrence Summers

If you want to register your GST number, go to our article by clicking GST Number: How to Register for GST Number?

4. Wrapping it up!

It’s tough to afford penalties and interests, so try to submit HST/GST on time. Our corporate tax professionals will assist you by keeping your books up to date to avoid penalties. Yogi & Associates will always be here for you! So, get help through our bookkeeping or business incorporation services. We can help you to register your business all the way from start so that we start this journey together. This way you will not face in hurdles in any kind of business activities. We will help you as much as we can to avoid these penalties as much as possible.

Contact Yogi & Associates!