Did you know that Canada Revenue Agency (CRA) can keep your income tax refund if your tax return is filed more than three years late?
I have had clients who have filed multiple returns multiple years late and it is only recently that we have learned the net efunds will not be paid to the taxpayer.
CRA often changes assessing practices and we do not necessarily hear about it until it is too late. So I am here to tell you today that if CRA owes you money and you are happy about that because you know you can get it whenever you want…that you had better file those late returns.
If your returns are older than 3 years it is possible you will not get the money. It appears that CRA will apply a refund to any tax that you owe but they will not send you a cheque.
Yet another reason to file all your returns on time.