Do you own a business in Mississauga? If yes, follow the Canada Revenue Agency (CRA) rules to file your GST/HST return. After incorporating your business, you must collect the GST or HST from your clients. You also need to review your bookkeeping records daily. This way, you won’t forget the deadline for submission. Still confused? Don’t panic! Our corporate tax professionals at YOGI & ASSOCIATES will help you to avoid penalties for late submission of GST/HST.
1. Cost for Filing Late GST/HST:
1. Fail to Submit for Late GST/HST:
If you fail to submit your GST/HST on time, CRA will penalize your company. The calculation of this penalty is as follows:
|A||=||How much you earn|
|B||=||25 percent of A|
|C||=||The total of full months the return is past due, up to 12 months.|
|1% of 30,000||=||$300|
|(25% of $300) * 8||=||$600|
|$300 + $600||=||$900 penalty.|
2. Demand to File:
If CRA demands you to submit general sale tax and fails to submit it, then CRA will give you a penalty raise of $250.
“Make sure you pay your taxes; otherwise you can get in a lot of trouble.”–Richard M. Nixon
3. Fail to Submit Electronically:
The CRA will penalize you $100 for the first time you fail to file your GST/HST online. After that, the fine will rise to $250 for a subsequent failure to do so.
4. 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 the correct information.
- You fail to provide the information about 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 in Late Submission of GST/HST:
1. Arrears Interest:
2. Installments Interest:
3. Refund 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. Update Bookkeeping Records:
With the GST/HST rules and regulations, keeping your bookkeeping records up to date is essential. You’ll face a penalty if you miss the deadline to file your taxes. We can help you by providing our bookkeeping services. They are affordable and suitable for your needs. So, feel free to contact Yogi & Associates!