Penalty and Interest

By XYZ updated on 9/19/2014.

Late T1, T2, T3 income tax return filings
Penalty – 5% of unpaid tax plus 1% of unpaid tax for each complete month to a maximum of 12 months

Late HST return filings
Penalty – 1% of any unpaid tax plus 0.25% for each complete month the return is outstanding, to a maximum of 12 months (total penalty maxes at 4%)

Late HST and income tax payments
Interest – T-Bill rate plus 4%

Late T3, T4, T5, NR4 & T5018 information return filings
Penalty – greater of $100 or $10-$75/day times the number of days (to a maximum of 100 days)

Late T5013 information return filings
Penalty – $25/day to a maximum of $2500
Note – Tax laws are subject to change and this website may not have the latest information. Prior to making any decisions please feel free to contact us or visit CRA website for latest information.

Iris CPA, CGA cell: 647-779-7887; Wechat: xyz4tax
Disclaimer: The authors of strive, but cannot guarantee, to provide information which is current and accurate. Individual circumstances have a significant effect on how tax and financial information can be used. Due to this, and to the nature of the information, it should not be relied upon for decision making without professional advice. provides links to other web sites. The authors of cannot guarantee the accuracy of the information provided on linked sites.

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