What happens if I don't file my 2022 personal taxes?

Filing your personal taxes is a legal requirement in Canada, and failing to do so can result in serious consequences. If you do not file your personal taxes for the 2022 tax year, the Canada Revenue Agency (CRA) may take action to collect the taxes you owe.

One of the consequences of not filing your personal taxes is that you may be subject to late-filing penalties. The CRA charges a penalty of 5% of your unpaid taxes, plus 1% of your unpaid taxes for each full month that your return is late, up to a maximum of 12 months. For example, if you owe $1,000 in taxes and your return is six months late, the late-filing penalty would be $70 ($1,000 x 5% + $1,000 x 6 x 1%).

In addition to late-filing penalties, the CRA may also charge interest on any unpaid taxes. The interest rate is determined quarterly and is based on the Bank of Canada's prescribed interest rate, plus 4%. This means that the interest rate can vary, but it is typically around 5% per year.

Another consequence of not filing your personal taxes is that you may be unable to access certain government benefits and credits. For example, the CRA uses your tax return to determine your eligibility for benefits and credits such as the Canada Child Benefit, the GST/HST credit, and the Working Income Tax Benefit. If you do not file your tax return, you may not be eligible for these benefits and credits.

In severe cases, the CRA may take legal action to collect the taxes you owe. This could include garnishing your wages or seizing your assets.

In conclusion, failing to file your personal taxes can result in late-filing penalties, interest charges, and loss of access to government benefits and credits. In severe cases, the CRA may take legal action to collect the taxes you owe. It's important to file your personal taxes on time to avoid these consequences.