Minimize Penalties & Interest from the CRA with Late HST Return Filings

Hi! My name is Arielle and I work as a bookkeeper in Toronto, Canada.
In this video I will be teaching you guys how to minimize your penalties and interest from the Canada Revenue Agency (CRA) if you're late on filing your HST returns!
Check out my socials for other tips and tricks on how to run a successful business in Canada, and as always, feel free to message me with any questions!
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[@HamidurRahman]

Hey Arielle thanks for such a helpful tutorial -

[@FixMyBooks]

You're welcome!

[@steve8803]

The CRA are crooks. I just did an estate final tax return. The final tax return has to be mailed in, it can't be netfiled. The due date was June 10th in this particular case - 6 months after death. As long as the return is mailed/postmarked with a date on, or before the 10th it is considered on time. It was mailed/postmarked the 7th. Three days early. Whoever the misinformed CRA employee is that handled the return, deemed it three days late because they physically received it in the mail on the 13th. But, the filing date it NOT the date they receive it, they have to allow time for postage. The official filing date is when it was mailed/postmarked. Again, 3 days early! So they have wrongfully tacked on thousands in penalty fees. I will have to battle this with them and I am sure it will take many months before they settle their mistake. Unreal!

[@FixMyBooks]

Oh there are ways to this. Step 1: File this form: www.canada.ca/en/revenue-agency/services/forms-publications/forms/rc4288.html mention exactly what you mentioned in your comment and attach the receipt for the mail as well as a copy of the post marked envelope. They should waive it after that. If they do not, file a Notice of Objection, but yes if you mailed it by. You can also link to their own website where it says as long as it is postmarked by the due date, it will be considered filed on time: www.canada.ca/en/revenue-agency/news/2023/02/the-canada-revenue-agency-kicks-off-the-2023-tax-filing-season-canadians-need-to-file-their-returns-before-may-1.html Be aware that this takes around 1 year for them to even look at your RC4288 form so this whole process could take up to 18 months. But if they were hit with thousands in penalties and interest, the process to waive it would be worth it. Thanks!

[@FixMyBooks]

@@steve8803 Pay the full amount owed including the penalties and interest. If you do not pay the penalties and interest portion, that will accumulate penalties and interest as well. Yes, pay the full amount and then file the forms to get the penalties and interest waived.

[@FixMyBooks]

@@steve8803 This is an issue as you have no evidence of the envelope being post-marked. Do you have a copy of the actual receipt? The credit card transaction on your credit card statement is not acceptable as evidence to the CRA. You will have a hard time fighting them if this is your only evidence that you mailed the return in on time. Always take a photo of the envelope with the date stamped on it as well as a copy of the receipt itself.

[@FixMyBooks]

@@steve8803 Look I am here to help provide clarification, I am not here to help you fight the CRA on anything. I am telling you that it will be difficult for you to prove your case, that is all. I am not saying you cannot do it, I am saying that should the CRA require any hard evidence, you have none to supply. What you are implying on your last comment that they would make a false claim against you and destroy the evidence to help prove you as being the one in the wrong in this situation is an overstretch. Tax Law and Criminal Law are two different things. Tax Law usually implies that the burden on proof is on you (the taxpayer) that what you have done and filed is above board. This is also similar to when you are filing a personal tax return and they ask you to supply medical receipts etc. to substantiate your claims in your tax return, this is a similar case. This is why you need to keep receipts for everything.