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How Canadian Savers Can Protect Their Money in 2026

As 2026 unfolds, Canadian savers are navigating a financial landscape shaped by falling interest rates, persistent living‑cost pressures, and evolving tax‑advantaged opportunities. Experts say this is the year to be intentional, strategic, and proactive with your money. Reevaluate Your Savings Accounts Interest rates have been trending downward, and many high‑interest savings accounts have quietly reduced their payouts. GIC rates remain more stable, but they too are expected to soften as rate cuts continue. What to do now: Check the current rate on every savings account you hold Compare alternatives and switch if your rate has dropped significantly Consider laddering GICs to lock in competitive yields while they’re still available Make the Most of Your TFSA The Tax‑Free Savings Account remains one of the most powerful tools for Canadians. With annual contribution room increasing over time, it’s an ideal place to shelter both short‑term savings and long‑term investments. Why...
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What Happens If You Don’t File Your Taxes in Canada?

 

As the April 30 tax deadline approaches, it’s crucial to understand the consequences of not filing your tax return in Canada. Whether you owe money or not, failing to meet the deadline can lead to serious repercussions. Let’s dive into what you need to know:

  1. Late Filing Penalty:

    • If you owe taxes and miss the filing deadline, the Canadian Revenue Agency (CRA) imposes a late filing penalty. This penalty is calculated as follows:
      • Five percent of your 2023 balance owing.
      • Additional one percent for each full month you file after the due date, up to a maximum of 12 months.
    • In total, you could end up paying 17 percent of any balance you owe.

  2. Interest Charges:

    • The CRA charges compound daily interest on any balance owing for 2023 that you’re unable to pay by the April 30 deadline.
    • The interest rate is approximately 10 percent, and it accumulates daily starting from May 1, 2024.

  3. Severe Actions for Consistent Late Filers:

    • If you consistently file late or ignore repeated requests, the CRA can take more severe actions:
      • Garnishing wages.
      • Freezing bank accounts.
      • Placing liens on properties.
      • In extreme cases, tax evasion or fraud charges, which may lead to jail time.

  4. Benefits at Risk:

    • Even if you don’t owe money, timely filing is essential to maintain benefits such as:
      • Canada Child Benefit (CCB).
      • Provincial and territorial payments.
    • Failure to file could result in losing these benefits.

Remember, meeting the tax deadline is crucial to avoid penalties, interest, and potential legal consequences. Whether you owe money or not, file your taxes on time to stay on the right side of the CRA! 

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