---
title: What tax penalties can I face with late remittance (payments)?
description: Penalties for Late Tax Remittances in Canada
---
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# What tax penalties can I face with late remittance (payments)?
## Penalties for Late Tax Remittances in Canada
In Canada, timely tax remittance is crucial for businesses and self-employed individuals. The Canada Revenue Agency (CRA) imposes penalties for late tax remittances to ensure compliance and deter delays.
**The CRA charges interest on any outstanding tax amounts. Interest is compounded daily and can quickly accumulate if payments are not made promptly.**
**Late Filing Penalties:**
- **Corporations:** For corporate tax returns, if you fail to file your return by the due date, you may face a penalty of 5% of the unpaid tax plus 1% for each month the return is late, up to a maximum of 12 months.
- **Individuals and Partnerships:** If you miss the filing deadline, you may be penalized with a fixed amount plus additional penalties based on the number of days overdue.
⚠️ **Penalty Percentage**
- 3% if the remittance is 1-3 days late
- 5% if it is 4-5 days late
- 7% if it is 6-7 days late
- 10% for more than 7 days late, or if it never paid.
- 20% for repeat failures\* and violations.
\***Repeated Failures:** The CRA may impose higher penalties for subsequent offenses if you've been penalized for late payments before. *For instance, if you were late in two of the last three years, you could incur a more substantial penalty—10% of the unpaid tax plus 2% for each additional month the payment is overdue.*
*Suspected intentional misreporting and/or tax evasion and/or Persistent non-compliance can lead to additional legal actions and penalties*
*Source:*
*[https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/remitting-source-deductions/how-when-remit-due-dates.html#h\_2](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/remitting-source-deductions/how-when-remit-due-dates.html#h_2)*
*[https://www.canada.ca/en/revenue-agency/services/payments-cra/interest-penalties-late-incorrect-payments.html#toc2](https://www.canada.ca/en/revenue-agency/services/payments-cra/interest-penalties-late-incorrect-payments.html#toc2)*
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