What Happens If You Miss the Corporate Tax Filing Deadline in Canada?
Running a corporation comes with a long to-do list — and tax filing is one task you can’t afford to overlook. If you missed your corporate tax (T2) filing deadline in Canada, don’t panic. But do act fast.
Here’s exactly what happens, what penalties you might face, and how to fix it quickly.
When Is the Corporate Tax Filing Deadline?
Your T2 corporate tax return is due six months after your fiscal year-end.
- Example: If your fiscal year ends December 31, your T2 return is due by June 30.
- Even if you don’t owe taxes, you still need to file your T2.
If you owe corporate tax, payment is due within 2 months of year-end (3 months for some CCPCs). Filing late and paying late are two separate issues with different penalties.
Learn more about corporate tax filing deadlines on the CRA website.
Late Filing Penalties
If you miss the T2 deadline, CRA charges a late-filing penalty:
- 5% of the unpaid tax owing on the due date
- 1% of unpaid tax for each full month you’re late (up to 12 months)
If you were late in 3 or more of the last 4 years, the penalty doubles:
- 10% of unpaid tax + 2% per month late (up to 20 months)
Interest Charges
In addition to penalties, CRA charges compound daily interest on any balance owing starting the day after your payment is due.
This applies even if your return is only a few days late — and interest can stack up fast.
Impact on Tax Credits and Refunds
Filing late can delay:
- Scientific Research and Experimental Development (SR&ED) claims
- Input tax credit refunds
- Other refundable tax credits your corporation qualifies for
CRA can also deny certain deductions if they view your return as non-compliant.
Can You File After the Deadline?
Yes. CRA will still accept your return. File as soon as possible to reduce penalties and interest. The longer you wait, the worse it gets.
If your corporation doesn’t owe tax, there may be no financial penalty — but repeated late filings can trigger audits or increased CRA scrutiny.
Can You Request Penalty Relief?
If you missed the deadline due to serious illness, natural disaster, or other extraordinary circumstances, you may apply for relief through the Taxpayer Relief Program.
You’ll need:
- A written explanation
- Supporting documents
There’s no guarantee, but if you have a strong case, CRA may cancel or reduce penalties and interest.
Find out how to apply for taxpayer relief.
Steps to Take if You Missed the Deadline
- File the T2 return immediately — even if it’s late.
- Pay any outstanding tax as soon as you can.
- Contact a tax professional to help review and minimize penalties.
- Track upcoming deadlines to avoid repeat issues.
Avoid Late Filing Next Year with NRK Accounting
At NRK Accounting, we help corporations stay compliant and avoid costly late-filing headaches. If you’ve missed a deadline:
- We can help prepare and file your T2 ASAP
- Explore penalty relief options if applicable
- Put a system in place to keep you on track moving forward
Book a call today and get back on CRA’s good side — before interest and penalties snowball.