We were wondering what happens if someone misses filing their declaration. We searched and searched on line to see if we could find some info but could not. We emailed the government to get an understanding of what would happen if someone forgot to file their declaration and this was the response:
The declaration due date is March 31 each year as per the Act.
If a person does not complete their declaration by that due date, a tax account will be created and interest and penalties may be applicable.
“declaration due date”, in relation to filing a declaration under section 62 for a calendar year, means, as applicable,
(a)March 31 in the year following the calendar year, or
(b)if the date referred to in paragraph (a) is extended by the administrator under section 119 [extension of time], the later date;
A person can still complete their declaration after the due date and still select their exemption from the tax, but legislated interest and penalties may still be applicable.
Division 5 — Interest
Interest on unpaid taxes
86 If an owner fails to pay tax as required under section 78 [payment of tax], the owner must pay to the government interest on the amount unpaid from the date the tax was payable under that section until the date of payment.
Interest on excess refund
87 If an amount is deemed under section 79 (1) [excess refund] to be an amount payable by a person, the person is liable to pay interest on the amount from the date the amount became payable under that section until the date of payment.
Interest on penalties
88 A person must pay to the government interest on a penalty assessed under this Act as follows:
(a)in the case of a penalty under section 80 [late payment penalty], from the date on which tax was payable until the date of payment;
(b)in the case of a penalty under section 81 [penalty for failure to provide required information], from the date on which the declaration was filed until the date of payment;
(c)in the case of a penalty under section 82 [penalties respecting information and records] for a failure to comply with section 68 (2) [consequential assessments — income taxes] or 69 (2) [consequential assessments — person with disabilities], from the date on which the notice was required to be filed until the date of payment;
(d)in the case of a penalty under section 83 (2) [gross negligence], from the date on which the declaration, notice, application or other record was filed or supplied, or the date on which the information was supplied, until the date of payment;
(e)in the case of any other penalty, from the date of the notice of assessment that specifies the amount of the penalty assessed until the date of payment.
Calculation of interest
89 Interest payable to the government under this Act must be calculated at the prescribed rate and in the prescribed manner.
No interest if full payment within 30 days
90 Despite any other provision of this Division, if
(a)a notice of assessment or statement of account given to a person by the administrator specifies an amount owing to the government, and
(b)the person, within 30 days after the date of the notice of assessment or statement of account, pays the amount owing in full,
interest is not payable on the amount owing from the date of the notice of assessment or statement of account until the date of payment.
Division 4 — Administrative Penalties
Late payment penalty
80 If an owner of a residential property fails to pay all or part of the owner’s tax payable for the 2020 or a subsequent calendar year by the date on which the tax is required under this Act to be paid, the administrator may impose a penalty equal to 10% of the unpaid tax.
For more information, a complete list of exemptions, and to learn what is new or has changed about the speculation and vacancy tax, please visit the speculation and vacancy tax website.
Annual Property Tax Services
Property Taxation Branch
Ministry of Finance
Note: This correspondence describes how the Ministry interprets the relevant tax provisions for information purposes only. This response may be impacted by variations in circumstance, subsequent changes to legislation or subsequent court decisions. The Ministry is not responsible for updating this response if there are any subsequent changes to the law. This response is provided as an aid to understanding the legislation and is not intended to replace the legislation.
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