death and...

November 23, 2005 6:39 PM

I haven't filed a Canadian tax return since 1996, but I am sure I don't owe any money to the government. How much trouble am I in?

I am a pathological procrastinator. I don't have anything to hide, I am just really, really lazy when it comes to paperwork.

I had almost no income (perpetual student supported by parents) until the last couple years, and by my calculation I am owed a substantial tax refund for every year for which I haven't filed.

I am in trouble? If so, what are the consequences I have to face? I want to take care it of it all in the next few weeks.

posted by randomstriker to Work & Money (13 answers total)

In Canada you don't actually have to file taxes if you don't owe money. You should still do the paperwork just in case the goverment ever disagrees with you. Here's a list of exceptions.
posted by substrate at 6:59 PM on November 23, 2005

According to my tax guy, you only need to file if you owe money, in which case you have up to seven years to file.

If they owe you money, there's no law saying you have to take it.
posted by Jairus at 6:59 PM on November 23, 2005

As long as you don't owe them any money you're fine.

You may find it easiest to go to an accountant to take care of it all for you. (they'll tell you exactly what forms you need to track down and submit with your returns - T4's, T2202's for tuition etc - don't forget any interest you may have paid on canada student loans either)
posted by davey_darling at 7:00 PM on November 23, 2005

You really are throwing money away if you really are owed a refund. You should file for the last few years - I'msure the time it takes will work out to a decent amount of $$ per hour.
posted by GuyZero at 7:23 PM on November 23, 2005

No trouble at all.

Revenue Canada is paying 5% interest on the money they owe you, so it might not be a bad idea to leave your money with them...

Seriously, go visit an accountant now. You're losing money for every day that you wait. You'll pay anywhere from $30-$100 or so for each return. And you could be looking at a pretty decent cheque in 3 to 6 months.

You also want to file returns as you can so you can build up some RRSP contribution room.

You'll lose out on some tax credits such as the GST from more than 3 years ago (I think) and that old election ploy, the heating fuel rebate.

And buy yourself a copy of The Wealthy Barber.
posted by angrybeaver at 7:32 PM on November 23, 2005

angrybeaver: If the OP files his taxes now, he'll get three years' worth of GST credits along with whatever return he's owed?
posted by S.C. at 7:42 PM on November 23, 2005

I would have to look up my returns but yes I think so.
posted by angrybeaver at 7:58 PM on November 23, 2005

mmmm, GST credits! Free money finding it's way into your bank account when you're not looking (4 times/year!). Def worth the effort all by itself.
posted by tiamat at 8:40 PM on November 23, 2005

If you really don't owe them money, which seems pretty unlikley, then they instead owe you.

I'd say it's time to collect.
posted by PareidoliaticBoy at 10:07 PM on November 23, 2005

I was in your situation at one point (with the exception that I'm in the US). Didn't want to do the paperwork, wasn't worried about it because they owed me money. But then one day the IRS just up and decided I did owe them money. A lot of money. And when you're dealing with a government agency (particularly one with the reputation of the IRS), it's not always clear that just because you're right you're going to come out OK. It was a little scary for a while but I hired an accountant, got all caught up on everything. Had to pay a $100 late filing fee (plus accountant's fees) but that was it.

Do yourself a favor and get yourself caught up. If you really don't owe anything, the paperwork shouldn't be too bad, and the fine, if any, minimal. You'll sleep a lot better at night.
posted by zanni at 12:19 AM on November 24, 2005

You can call revenue canada and explain the situation to them and they will send you the form for each year your missed AND they will send you copies of your T4s and other forms. I've done it, though not for 10 years! They have it all electronically, the forms and T4s arrive in a couple of weeks, and you dont need to scrabble around looking for them. If your tax is that simple, you can do the first return in an hour, then each subsequent one in 20 minutes. Send them off, and if you mess up, they recalculate it all anyway, and send you a cheque. Do it now, before they start getting a flood of 2005 returns in January and February.

The agents on the phone are really friendly if you call them. Not so much if they have to call you.
posted by Rumple at 12:41 AM on November 24, 2005

And if it turns out you owe them money and you can't afford it, file anyway. There's penalties for not filing, plus the interest on the money you owe. So you might as well file and this way avoid the no-file penalties. Then start making payments towards what you owe, rather than wait until you think you can afford the whole bill.
posted by raedyn at 5:59 AM on November 24, 2005

This is not very rare; I've let taxes go for up to 3 years, and then I get all my paperwork together and go to the tax prep joint, and they do the forms, and I still get money back, even after paying tax prep fees. Just make an appt, and go. File as many returns as Canada allows, and you'll likely see some cash. They'll know how to get whatever paperwork is needed, and how to deal with unfiled returns, and they won't give you a hard time.
posted by theora55 at 3:44 PM on November 24, 2005