Penalties and interest calculator

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.


You don’t think that Taxcycle’s Interest & Penalty worksheet follows the law?

Sorry, I disagree.
My TC version (2021.04.14) appears to be doing it correctly

Perhaps you could reference the section of the income tax act legislation which you believe is wrong? Or the TC version that you think is wrong?

@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…


You are looking for something that does not exist.

There is no “payment extension”.

What you may be thinking of is interest relief for certain qualifying individuals, which is on the cra website.

(Interest relief if you received COVID-19 benefits - Personal income tax -

Thank You. That is exactly the link that I couldn’t seem to find.