What is the difference between tax evasion, late tax filing, unfiled tax returns and unpaid taxes? Deliberate falsification of a tax return, either by not reporting income or claiming false expenses is defined as tax evasion. There are very severe penalties of between 50% to 200% and/or prison sentence for tax evasion offences. Late filing is filing a return after the due date is passed. Penalties for late filing are explained above. In exceptional circumstances the penalties and interest could be waived. We can assist in this area if you qualify. Unfiled tax returns will normally lead to late tax filing and therefore penalties. Unpaid taxes result in interest charges on the balance owing. What happens if I don’t have all of my records? We can help you in getting as much as information possible regarding your prior year taxes. Give us a call.
