Most people think “interest” and “penalties” are the same CRA charge. They’re not.
Interest is the cost of being late with money you owed, and it generally starts right after a payment due date and keeps accruing (often compounded daily).
Penalties are separate charges triggered by specific behaviour, like filing late, remitting payroll late, or filing information slips late, and they’re usually calculated using set formulas or percentage bands.
In this in-depth blog post we cover:
What CRA “interest” is (and why it keeps growing)
What CRA “penalties” are (and what triggers them)
How CRA calculates interest and penalties
Real-world examples (so you can sanity-check CRA charges)
How to reduce the damage
When and how to request cancellation/waiver (Taxpayer Relief)
…and more!
Let’s dive in!
Power to you,
Think Team 🙏
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