Penalties and interest

You must file your return and make any payments on time. If you do not, we can charge penalties and interest at the prescribed interest rate on any returns or amounts we have not received by the filing due date.

There are three types of penalties that we may charge:

• Late filing penalties are charged when a return or instalment is not received on time. The penalty is 6% per year of the outstanding amount.
• Civil penalties are charged for failure to file a return (or provide information) or making false statements or omissions.
• Criminal penalties are imposed as a result of conviction for the offence of failing to comply with the GST/HST requirements of the Excise Tax Act.

We will charge interest at the prescibed rate on:

• any outstanding net tax amount you owed on your return after deducting your payments and instalments, starting the day the return was due to be filed;
• late or insufficient instalments;
• any penalties assessed; and
• any other outstanding GST/HST amount that you must pay or remit to the Receiver General starting the day the amount was due.

We adjust the prescribed interest rate quarterly to reflect current interest rates. Both the prescribed interest and the penalty are compounded daily. We calculate penalty and interest beginning on the day after the due date of the instalment or remittance, until the day we receive the outstanding amount.

Note
You have to file your GST/HST return on time even if you are expecting a refund.

For information on how and when to make payments, review Payments and instalments.

Forms and publications

• General Information for GST/HST Registrants guide (RC4022)