Key facts
- CRA denied taxpayer relief for late filing penalties and interest.
- Late filing penalty is 5% of balance owing, plus 1% per month up to 12 months.
- Self-employed taxpayers have until June 15 to file for 2025.
The Canada Revenue Agency (CRA) has denied taxpayer relief concerning penalties and interest for late filing. For the 2025 tax year, individuals who file their tax returns late may incur a penalty. This penalty is calculated as five percent of the outstanding balance owed to the CRA. Additionally, there is a further charge of one percent of the balance owing for each month the return is late, with a maximum duration of 12 months for this additional charge. However, self-employed taxpayers and their spouses or partners are granted an extended deadline of June 15 to file their 2025 tax returns on time.