The CRA’s Voluntary Disclosures Program provides taxpayers with a way to file a return that was skipped or to amend previous taxes. You can apply to the agency to avoid prosecution and penalties. The program is open to small business owners, including partnerships and corporations. The penalties are waived, but you still owe interest and the back taxes.
The penalty for not filing your 2015 taxes on time is 5% of the balance owed, plus 1% of the balance each month your return is late. If you had to pay a late penalty in the prior three years, the percentage increases to 10% plus 2% for each month it is outstanding. After the first time you apply for relief, the CRA expects you to keep your taxes current. If there is a situation that occurs that is beyond your control, the CRA may consider granting you relief a second time.