Late filing penalty update

The penalty is now 6% of unpaid taxes instead of 5% for first time offences not 5% on the Interest/Penalty worksheet.

Just got an ENOA for a client with a return due date of May 2 - filed on 06/22/2022

Penalty for filing your tax return late

If you file your tax return after the due date and have a balance owing, you will be charged a late-filing penalty. Filing late may also cause delays to your benefit and credit payments.

If you cannot pay your balance owing, you should still file on time to avoid being charged the late-filing penalty.

The late-filing penalty is 5% of your 2021 balance owing, plus an additional 1% for each full month you file after the due date, to a maximum of 12 months.

If the CRA charged a late-filing penalty for 2018, 2019 or 2020 and requested a formal demand for a return, your late-filing penalty for 2021 will be 10% of your balance owing. You will be charged an additional 2% for each full month that you file after the due date, to a maximum of 20 months.

Likely your client was charged 6% because a full month had passed since the filing due date.