T5 Penalties and Interest
The penalty for late filing T5 (both slips and summary) is:
$25 per day, minimum of $100 to maximum of $2500 for each slips
Interest on penalty for late filing:
Compounded DAILY at prescribe rate on the total amount of penalties and interest outstanding.
Although the prescribe rate table doesn’t seem to be clear on this category, you can see the rates are mostly the same for all amount owing to the government. For example, the rate for 2008 first quarter is 8% for most category, it is your rate for that quarter.
Example: You are late for 2 days on filing on 2 slips
You owe the government $25 * 2 days = $50 per slip for 2 slips = $100
First day late:
First day of late penalty is $25 * 2 slips = $50
First day interest = $50 * 8% = $4
Total penalty and interest on the first day late = $54
Second day late:
Second day of late penalty is $25 * 2 slips = $50
Total penalty and interest so far = $54 (first day late) + $50 = $104
Second day interest = $104 * 8% = $8.32
Total penalty and interest on second day late = $104 + $8.32 = $112.32
Related Articles:
Pay Yourself Dividend
Filing T5 – Paying Dividend
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