Filing Late GST/HST: 4 Intense Penalties

by | Jun 3, 2022

Do you own a business in Mississauga? If yes, follow the Canada Revenue Agency (CRA) rules to file your GST/HST return. After incorporating your business, you must collect the GST or HST from your clients. You also need to review your bookkeeping records daily. This way, you won’t forget the deadline for submission. Still confused? Don’t panic! Our corporate tax professionals at YOGI & ASSOCIATES will help you to avoid penalties for late submission of GST/HST


1. Cost for Filing Late GST/HST:

Fail to Submit for Late GST/HST:

If you fail to submit your GST/HST on time, CRA will penalize your company. The calculation of this penalty is as follows:

A+ (B*C)

A = How much you earn
B = 25 percent of A
C = The total of full months the return is past due, up to 12 months.

For Instance:

1% of 30,000 = $300
(25% of $300) * 8 = $600
$300 + $600 = $900 penalty.

Demand to File:

If CRA demands you to submit general sale tax and fails to submit it, then CRA will give you a penalty raise of $250.

“Make sure you pay your taxes; otherwise you can get in a lot of trouble.”–Richard M. Nixon

Fail to Submit Electronically:

The CRA will penalize you $100 for the first time you fail to file your GST/HST online. After that, the fine will rise to $250 for a subsequent failure to do so.

Fail to File Correct Information:

If any of the following apply, CRA may assess a penalty of up to 10% (5% of the amount in question + 1% of the difference between what was stated and what should have been stated):

  • You fail to provide the correct information.
  • You fail to provide the information about amounts correctly, i-e, over/under-reporting of charges (over-reporting of loss and under-reporting of profits).
  • You fail to provide correct information of amounts by mistake.

2. Interest in Late Submission of GST/HST:

The CRA will charge you GST/HST return interest if you pay late. So, depending on the debt, two types of interest apply on GST/HST. First, let’s discuss the situations when you have to pay the claim.

Arrears Interest:

The CRA will charge you interest on your account every three months using the daily compounded interest rate.

Installments Interest:

If you fail to make your payment by the dead line, the CRA will charge you 4% plus the yield on a 90-day Treasury note.

3. Refund Interest:

There are charges applied on the late/unpaid GST/HST return or outstanding/overdue debts. But there is a benefit for those who has a refund. They will get the refund interest.
Once you file your claim, the CRA must pay you daily compounded interest on a refund. When you receive your refund, the CRA calculates your received interest.

“All taxes discourage something. Why not discourage bad things like pollution rather than good things like working or investment?”–Lawrence Summers

4. Update Bookkeeping Records:

With the GST/HST rules and regulations, keeping your bookkeeping records up to date is essential. You’ll face a penalty if you miss the deadline to file your taxes. We can help you by providing our bookkeeping services. They are affordable and suitable for your needs. So, feel free to contact Yogi & Associates!

Wrapping it up!

It’s tough to afford penalties and interests, so submit HST/GST on time. Our corporate tax professionals will assist you by keeping your bookkeeping records current to avoid penalties. So, get help through our bookkeeping or business incorporation services. Do visit Yogi & Associates!


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