What happens if you don't file your taxes in Canada

• Late-filing penalty: 5% of the balance owing, plus 1% for each full month late, up to 12 months.
• Repeat penalty: 10% plus 2% for each full month late, up to 20 months. It applies if you were penalized in the last 3 years and got a demand to file.
• Interest: the CRA charges compound daily interest starting the day after the due date.

The CRA's Non-Filer Program picks people who had to file, did not, and appear to owe tax. It can send a letter, phone you, or visit. A letter asking you to file is a legal demand.

• It can assess tax owing for you, without your deductions.
• It can charge penalties and interest.
• Prosecution is a last step if the other steps fail. It can lead to a fine, jail, or both.

The CRA page does not give a set number of years. Do not assume there is a cut-off.

The late-filing penalty applies when you owe a balance. Filing late can still delay benefit and credit payments, such as the Canada Child Benefit.

• Benefits you can lose if you don't file

Gather your slips for the oldest missing year. File the oldest year first. Then ask about a payment plan if you cannot pay.

• Can't pay your taxes?
• Behind by several years

• CRA Non-Filer helpline: 1-800-448-0444, Monday to Friday, 6:45 am to 7:30 pm Eastern.
• CRA TeleArrangement for personal income tax debt: 1-866-256-1147, Monday to Friday, 7 am to 10 pm Eastern.
• Free tax clinics for simple returns if your income is modest.
• A Licensed Insolvency Trustee, who may offer a free first meeting.