Just trying to understand the Interest & Penalty worksheet in Taxcycle. Seems like everywhere I look on CRAs website it mentions that income tax is due to be paid April 30 or penalties and interest will apply on the balance. I know self employed returns are due to be filed June 15 and that interest would apply on any unpaid balance as of April 30. But is the 5% penalty automatically charged May 1 for self employed individuals?? The Taxcycle calculator sure doesn’t reflect that if that is the case.
In my experience, I’ve never seen a 5% penalty applied to a T1 filed during May. Interest, yes. And honestly, I’ve not filed very many late-filed returns in May that would have had the late filing penalty added. Take my experience with a grain of salt.
@grgpenner To translate @joe.justjoe1 response into my own words - I didn’t check the Act since @joe.justjoe1 forgot to give us the reference in the Act - the 5% penalty for self employed returns does not apply until after the June 15 filing deadline.
What is bugging me is that still the CRA website does not seem to provide any information on the payment extension to 2022 for certain individuals. It’s unnerving…