CRA Strike: What You Need to Know

It is official, 60% of CRA’s employees are on strike as of April 19th, but what does this mean for you and your personal tax returns?

The CRA has announced there is NO filing extension being offered. 

Personal tax returns are still due by the May 1st deadline unless you are self-employed.

All tax payments MUST be received by the May 1st deadline, or late payment penalties and interest will be assessed against outstanding amounts.

Failing to submit your 2022 tax returns on time may result in a late-filing penalty. This penalty amounts to 5% of your balance owing but could be higher depending on your specific circumstances. Additionally, for every full month that your filing is delayed beyond the due date, you may be charged an extra 1%, up to a maximum of 12 months.

The CRA’s current rate of interest on overdue taxes is 9%.

The assessment of personal tax returns is expected to be impacted – how exactly is unclear. The CRA assesses electronically filed returns using software, so we would expect assessments should continue to be generated unless a return is selected for a pre-assessment review. 

Delays are expected for anyone who paper files returns, anyone in the middle of a CRA review or audit, or anyone selected for a review. The current processing time for these services averages six months, and the strike is expected to prolong the timelines further.

For any taxpayer expecting a refund who is signed up for direct deposits, we expect you to receive the refund still as the assessment software automatically requests the refund. However, if you receive your refund via cheque, it may be delayed due to the strike.

For any taxpayer who pays their balances via online banking, the payments should be posted in the CRA’s systems as soon as you make the payment. However, if you pay at your bank or via cheque, the payments will be delayed in being posted due to the strike. Please ensure to retain your proof of payment should any issues arise. 

The team at Lekadir LLP is here to help our clients. Please get in touch with your account manager or firm contact if you have any concerns about how the CRA strike will impact your situation or any other concerns that may arise.