The news bulletin from CRA today (see link below) says there will be penalties charged for late-filed and failure to file GST/HST returns “…even if the GST/HST return is a nil or credit return.” But, it doesn’t say WHAT the penalties are. When I look up GST filing penalties on the CRA website, there has been no change to that document - it shows penalties only as a percentage of the amount owing. So, if there is a credit (or refund), does that mean CRA will charge themselves a penalty and send it to the taxpayer? 
It seems to me that specific penalty is for filing by paper if you are supposed to file electronically.
@Rein
Yes - you are correct - per the last column in the table. But the second paragraph above that table simply says the penalty applies to all who “fail to do so” which I assume includes “failure to file” in any format.
In any case, the issue is the same - what penalties are they charging for nil returns and refund balances?
- $100 for the first return that is not filed electronically
- $250 for each subsequent return that is not filed electronically
1 Like
This statement is ambiguous:
“GST/HST registrants who are required to file electronically and fail to do so are liable for a penalty for each failure, and the penalty will apply even if the GST/HST return is a nil or credit return. For GST/HST registrants that file annually, this will only apply to their 2024 returns that are due in 2025.”
Brings the following questionable amendment:
GST/HST registrants who are required to file electronically {but are actually still filing by paper OR just don’t bother to file on time but are not filing by paper} and fail to do so are liable for a penalty for each failure, and the penalty will apply even if the GST/HST return is a nil or credit return. For GST/HST registrants that file annually, this will only apply to their 2024 returns that are due in 2025.
ie “If you’re a NIL or CREDIT return and don’t file on time…we’re penalizing you because you are making us send out all kinds of useless reminders and we’re peeved at you.” If they mean that, they should state that.
2 Likes
Interesting comment/ question.
PER CRA WEBSITE
CRA seems to infer that all non-exempt GST filers are subject to this penalty.
**These are the CRA GST failure to file electronically calculations.
It would appear to but does not clearly specify what happens in the event of a nil or refund situation."
“$100 for the initial return not filed electronically.
$250 for each following return not filed electronically.”
My comments
Let’s consider how CRA assesses penalties for payroll late filers…
In the case of a nil payroll return with no T4’s but with a payroll account remaining open there is no late filing penalty.
I the case of a nil or refund return but late filed there is a late filing fee.
I would assume that this would also apply to GST returns. However, it remains for CRA to confirm through a ruling or information bulletin, or, to clarify to be sure. **
This is the CRA GST penalty intro
"File online and avoid penalties
For reporting periods that begin after December 31, 2023, all GST/HST registrants, with the exception of charities and selected listed financial institution (SLFIs), are required to file returns electronically. If you continue to file a paper return, you will be charged a penalty."
1 Like