What happens if I don’t file an old personal tax year?

Skipping a year does not close it. CRA can ask, estimate your income, and assess you without your slips. That arbitrary assessment is often higher than the real return, and the way to fix it is still to file.

The usual cost

This applies to 2022 and to any later year you skipped. Bring whatever slips you still have. We order missing slips where we can and file the catch-up set in order.

• Late-filing penalty, when you owe tax: 5% of the balance owing plus 1% for each full month the return is late, to a maximum of 12 months.
• If you were penalized in any of the three prior years and CRA issues a demand to file, the repeat penalty is 10% plus 2% a month for up to 20 months.
• Interest on the balance, compounded daily, at the prescribed rate plus 4 percentage points for ordinary arrears. The rate changes each quarter — do not budget a single round number.
• GST/HST credit, Canada Child Benefit, and provincial credits generally will not start or continue without a filed return.