I Haven’t Filed My Corporate Taxes in Three Years: What Should I Do?
Life happens, and sometimes it gets in the way of fulfilling your responsibilities as a business owner or the director of a charitable organization. If you’re behind on your corporate taxes (or maybe you’ve never filed a corporate tax return), it’s important to get caught up and then do your best to stay on top of things.
The Canada Revenue Agency (CRA) offers several programs designed to help you get back on track with your tax filings.
How We Can Help
At Virtual Heights Accounting, we understand that managing corporate taxes can be overwhelming, especially if you’ve fallen behind. As a certified CPA accounting firm, we offer comprehensive bookkeeping and tax services to help you get your financials in order. Our team is experienced in filing overdue tax returns and will work with you to ensure compliance with all CRA regulations.
During this process, we can also communicate directly with the CRA on your behalf to resolve any issues and help determine if you qualify for any of their relief programs.
🟢 Voluntary Disclosure – Corporate Taxes
The CRA's Voluntary Disclosure Program allows taxpayers to correct previously filed returns or to file returns that were never submitted. While you still need to pay the taxes and interest on any late payments, this program can help you avoid the penalties that would normally apply.
🟢 Taxpayer Relief Program – Corporate Taxes
The Taxpayer Relief Program is there for those who find themselves in special circumstances. If you couldn’t file your tax returns due to something beyond your control, like a fire or flood, this program might be for you. The CRA reviews applications on a case-by-case basis. If your application is accepted, the CRA may waive the interest and penalties, but any owed taxes will still be your responsibility. Taxes are a necessary part of life that fund many public benefits, so they can't be avoided entirely!
The CRA is usually reasonable when it comes to setting up payment plans if you’re unable to pay the full amount of taxes owed.
🟢 Non-Filer Program – Corporate Taxes
This program is designed to encourage taxpayers to file their returns voluntarily. If you fail to do so, the CRA has the right to enforce compliance under the Canadian Income Tax Act. The CRA can demand returns, initiate field visits, or assess an amount owing. Often, when the CRA makes an arbitrary assessment, the amount owed is more than it would have been if you had filed your corporate taxes. Another reason to stay on top of things! Once you file your return, the CRA will adjust your tax owing to the actual balance.
