The standard penalty for not filing your individual and corporate tax is 5 percent of what you owe plus 1 percent for every month missed for not filing your return. It can really stack up fast so, it’s best to file as soon as possible.
Before you contact the CRA be sure to review the following steps:
- Locate your last notice of assessment.
- Collect all of your T slips from every year you missed (note: an accountant can help you recover those missing T Slips from the CRA).
- Gather your RRSP contributions and any other investment activities.
- Compile all of your receipts from charitable donations to expenses e.g. medical, disability, moving, rental, business.
- And book a meeting with a licensed accountant so, you can discuss your situation and review you options including if you qualify for the Voluntary Disclosure Program, which could result in some penalty relief.