Meet Your Tax Filing Deadline
Most people know that by filing your tax return on time–that is by midnight April 30–you can avoid a late filing penalty. The penalty is 5% of the outstanding taxes due plus 1 per cent per month of the outstanding balance, to a maximum of 12 months.
Taxpayers with unincorporated small businesses can file as late as June 15. This allows extra computation time for complicated business tax provisions. The extended filing deadline also applies to the return of the spouse of the small business owner; however, if either of you owe money to the tax department when you do file, interest will be charged from April 30 onward, but there is no late filing penalty. . .not unless you miss the June 15 deadline!
Therefore it rarely pays to file a return after April 30. If you’re owed a refund, you’re extending to our governments an interest-free loan until 45 days after April 30 or the time you actually file, which ever is later. Late filing can also create a problem in the future, if your return is reassessed. Reversals of refunds to balances due will invoke the late filing penalties.
File on time and file by the rules to minimize the taxes you pay over the long term.