If you can’t afford to pay your balance to the CRA, you should still file your return on time. This way, you will avoid a late filing penalty and ensure that your benefit payments (if any) are not interrupted.
If you can’t afford to pay your balance, compound daily interest will start accruing on your balance on May 1st. The CRA charges interest at the prescribed rate—currently 6%—this is a better rate than you can get on most loans.
If you are unable to pay the amount in full, don’t panic. While the CRA encourages you to pay in full, they understand that sometimes this is not possible. The CRA has a system in place where you can set up a payment arrangement. If you have a payment arrangement in place and pay on schedule, the CRA won’t take more serious action such as garnishing your wages or freezing your bank account.
Do not ignore your tax bill—you won’t end up in CRA collections if you communicate with the CRA from the beginning and make payments as you are able.