What should you do if you owe taxes that you cannot pay right now?

If you've calculated your taxes and know that you can't currently pay your balance owing, you should still file your tax return by the annual deadline to avoid the late-filing penalty.

After we've processed your return, we'll send you a Notice of Assessment. If your Notice shows a balance owing that you can't pay, you should arrange a mutually acceptable payment schedule by calling our toll-free number at 1-888-863-8657, Monday through Friday from 8:00 a.m. to 5:00 p.m. local time.

Any outstanding balance is subject to daily compound interest, starting on the annual filing deadline and continuing until you've paid the amount in full.

• The prescribed interest rate applied to amounts owed to the CRA is announced each quarter and is in effect for that quarter (a new quarter begins on the first day of January, April, July, and October each year).