So How Much Do You Owe?

Payment to CRA of your balance owing for 2007 personal income tax was due yesterday for all personal income tax filers including self-employed.

If you did not pay your 2007 taxes on time or if there is a balance owing for 2007 on your Notice of Assessment, CRA will charge compound daily interest starting May 1, 2008, on any unpaid amounts owing for 2007.

This includes any balance owing if they reassess your return.

In addition, CRA will charge you interest on any penalties, starting the day after your return is due. The rate of interest they charge can change every three months.

Currently, the interest rate charged on overdue taxes, Canada Pension Plan contributions, and Employment Insurance Premiums is 8%.

If you have amounts owing from previous years, CRA will continue to charge compound daily interest on those amounts. Payments you make are first applied to amounts owing from previous years.

If you owe tax for 2007, and do not file your return for 2007 on time, CRA will charge a late-filing penalty.

The penalty is 5% of your 2007 balance owing, plus 1% of your balance owing for each full month that your return is late, to a maximum of 12 months.

If they charged a late-filing penalty on your return for 2004, 2005, or 2006 your late-filing penalty for 2007 will be 10% of your 2007 balance owing, plus 2% of your 2007 balance owing for each full month that your return is late, to a maximum of 20 months.

As you can see, it is in your best interest to pay them as soon as possible and I may be able to help you with that.

Just go to my website www.joemalek.com , click to get started and then click on 2nd mortgage link to complete your online request and please, don’t hesitate to call me with any questions.

Thank you

Joe Malek, AMP
www.joemalek.com