Toronto Tax Lawyer - Unfiled Tax Returns

Find A Toronto Tax Lawyer For Unfiled Tax Returns

Toronto Tax Lawyer - Unfiled Tax Returns

Do You Have Unfiled Tax Returns With The CRA?

The Canadian tax system is what’s known as a self-reporting tax system, which means that it’s up to the individual taxpayer to file their tax return with the Canada Revenue Agency (CRA) every year. However, many of us fail to do so, whether it’s because we’re busy, overwhelmed, or one of many other reasons. What many Canadians don’t know is it’s illegal under the current law not to file a tax return every year that you earn an income.

When a taxpayer fails to file a tax return for a particular year, the CRA will generate a tax return on their behalf where they guesstimate the income based on a number of factors, including the taxpayer’s age, and previous returns. Essentially, the CRA will impute income on your behalf, despite lacking evidence to justify the quantum they attributed to you. This is known by some in the industry as the CRA’s “Fake Return” policy, which empowers them to demand payment of the quantum assessed in the fake return.

Therefore, it is vitally important for every Canadian taxpayer to understand that unfiled tax returns will not result in the end to their tax problems. Rather, the problem will only continue to compound, and the quantum of taxes that you’re on the hook for will continue to increase due to late fees and charges. At, we work with some of the best Toronto Tax Lawyers who can represent you in your battle with the CRA. We specialize in connecting you with the right Toronto Tax Lawyer for your matter. We customize all referrals to ensure that the lawyer meets the needs of the client on such things as cost, location, experience, language and gender.

Penalties For Unfiled Tax Returns

The financial penalty for filing a late tax return is based on whether you’re a first time offender, or repeat offender. For first time offenders, the penalty for filing a late tax return is 5% of the total unpaid taxes that you own, plus an additional 1% of that amount per month for a maximum period of 12 months, and a maximum percentage of 17%.

The financial penalty for repeat offenders is more aggressive, as it currently stands at 10% of the total unpaid taxes owed by you for the year in question, plus an additional 2% per month, up to a maximum of 20 months, and a maximum percentage of 50%.

At, we specialize in connecting taxpayers with skilled Toronto Tax Lawyers who can negotiate with the CRA to reduce your overall tax burden. Contact us any time to get connected with the right Toronto Tax Lawyer for your matter.

Penalties For Overdue Taxes

You’re probably not surprised to learn that the CRA is likely to tag on daily interest charges on the balance of the overdue taxes. What you may be surprised about, however, is that even if you don’t owe the CRA any money, but you haven’t filed your tax return, they can still charge you a daily interest, which begins running the very next day after your tax return is due.

It's not hard to imagine the quantum of accrued penalties reaching exorbitant amounts, especially if the taxpayer has neglected to file their tax returns for a number of years. Don't take on this problem alone. Call a client specialist at to get a free customized lawyer referral to a top Toronto Tax Lawyer. We work with some of the best Toronto Tax Lawyers, and we'll connect you with as many of them as you need to find a suitable candidate.

The CRA's Power To Collect Unpaid Tax Debts

Parliament has given the CRA a wide array of methods by which they can try and collect an unpaid text debt from either an individual taxpayer, or business. Some of the most commonly used methods by the CRA are:

  • Income Garnishing – this is where the CRA takes a portion of your wages directly from your employer.
  • Lien on Property – this is where the CRA registers a lien on property owned by the taxpayer, which can be either real property or chattels (as long as a lien can be registered against the property in question).
  • Credit Agency Reporting – this is where the CRA files a notice of outstanding debt on your credit history with one of the major credit reporting agencies. This can have a seriously detrimental effect on your ability to make any new purchases on credit. For example, you may experience problems securing new car loans, or mortgages for real property.
  • Forcing Home Sale – this is exactly as it sounds: the CRA petitions the court under the Partitions Act to list and sell your home, with the proceeds going to satisfy your outstanding tax debt.
  • Freezing/Seizing Bank Accounts – this is where the CRA seeks to satisfy your tax debt by taking money that you’ve deposited into a Canadian bank account.
  • Intercepting Accounts Receivable Payments – this is where the CRA takes any monies owed to you by a third party in satisfaction of your outstanding tax debt.
  • Seizing Your Assets – this is usually an option of last resort, and is where the CRA seizes any assets that you own, which they’ll in turn sell with the profits from the sale going to satisfy the tax debt that you owe them.

Why Do I Need A Toronto Tax Lawyer To Help Me With My Unfiled Tax Returns?

Over the past 5 years or so, the CRA has undergone many modernization upgrades to their systems, which include major improvements to the database of income transactions. This database helps the CRA identify the taxpayers who have not filed their returns, and streamlines the process by which to go after them. Therefore, if you've got unfiled tax returns, your name will move up the list of persons on the CRA's radar. If you fail to comply to their demands for payment, you'll likely be subject to legal enforcement actions.

However, all the above is predicated on your failure to rectify your tax situation before the CRA contacts you. In fact, if they come looking for you, then the cost of additional tax penalties is likely to grow exponentially. In addition, if the CRA seeks you out before you have filed past-due returns, the changes of criminal punishment increases many fold.

With all that you know about the penalties for procrastinating over your tax issues, why would you ever want to go at this alone? It's vitally important that you seek representation from a competent Toronto Tax Lawyer who can help you resolve your tax issues without exorbitant penalties or criminal sanction. Call us anytime at, and one of our client specialists will connect you with one of many skilled Toronto Tax Lawyers in our business network.

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