Friday, October 21, 2011

Owing the Taxman

In the end of May monthly report, the amount of tax owing was $4432.11.

When I filed my taxes, I had that balance down to $2,829.52. 
I had paid down $1602.59 of it. I also finally filed my 2010 taxes the same month.
I knew there was more to pay the tax man when I filed, but now I have my Notice of Assesment in my hot little hands.

It ain't pretty.

For the record, I am paying on taxes owing for 2009, to which they've added taxes owing for 2010, and a notice that I may have to start making installer payments for the tax year of 2011. This budget monster just keeps getting bigger and bigger. :(

I remember watching Gail on an episode of Til Debt do Us Part, where someone who hadn't filed their taxes on time (or at all) and owed Revenue Canada a considerable amount of money. She explained that not only does RC charge interest on balances owing, but they will also charge late filing fees and interest will be charged on that as well. Adding that every year you are behind in filing, the interest rate and fees on balances owing will climb, from something reasonable like 2% to extrodinary like 10% or even 50%. I remember thinking, "What a dumbass!"

Now who's the dumb bunny?

$2829.52  amount left owing from 2009 Tax year
$6250.29  amount owing for 2010 Tax year
$ 500.02  late filing penalties
$ 150.15  arrears interest
$9729.98  Total Amount now owing to Revenue Canada

Now to figure out how to pay this monster off.


  1. Ouch!! :( Can you get them to take more off your income for taxes so you don't owe so much in the end?

  2. @ Carla; - Nope. I'm self-employed, so this is all on me. No paycheque so to speak to have these things deducted from. :(
    I wish it were that simple.

  3. I know exactly how you feel. I just finished paying back taxes in the Spring of 2011 that I owed for the past 2 years. I owed around $7,000 altogether AHH!

  4. Ouch... I'm self employed as well For me it's a bit easier cause hubs works and gets a T4 so we have extra tax taken off his so his refund helps to pay my oweing but I still set aside some just in case.
    Can you talk to them about the late fees and interst?

  5. Oh Eboo that is a monster that's for sure. That being said perhaps monthly installments IS the way to go. One more mountain to climb but you're not alone. We'll support you each step of the way!