Why Back Taxes & Unfiled Returns Matters
The CRA’s Voluntary Disclosures Program can, in some cases, allow taxpayers who come forward before being contacted by the CRA to have penalties reduced or waived on previously unfiled or inaccurate returns. Interest and late-filing penalties continue to accrue on every unfiled year with a balance owing, which is why the total owed on multiple back years can grow quickly. The CRA can prepare and assess a return on your behalf using available information if you do not file, and that assessment is often less favourable than a properly prepared return.

