GST / HST Penalties and Interests
If your fiscal year end before April 2007, the following penalty applies to you:
- 6% per year on outstanding amount
- If you receive a warning notice to demand you to file and you still did not do so, penalty of $250 and 5% of the overdue amount will apply
Interests will be charge on your outstanding balance according to the current prescribe rate, you can find out the rate at http://www.cra-arc.gc.ca/tax/faq/interest_rates/menu-e.html. Notice that the rate change every quarter, hence your interest charges will vary by each quarter and remember interest are compounded daily!
If your fiscal year end after April 1, 2007, the following penalty applies to you
- 1% of outstanding amount, plus 0.25% of outstanding amount times the umber of months return is overdue upto a year.
- If you receive a warning notice to demand you to file and you still did not do so, $250 penalty will apply.
Interests is the current rate Plus 4%, again they are compounded daily!
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http://wizebiz.ca/?p=64 When do you need to file GST / HST
