Saskatchewan recently released Information Bulletin GENERAL-1, “Penalty and Interest Charges,” providing guidance on penalties and interest that may be imposed under various provincial tax acts.
As announced in this year’s budget, effective October 1, 2024, the following new penalties may be imposed:
- A penalty of $50 for failing to file a return by the due date (for each return not filed);
- A penalty equal to $500 (per incidence) for failing to produce books, records, or documents as required; and
- A penalty of $100 per incidence for failing to file in the manner required or failing to complete any information required on any return or form.
Prior to October 1, 2024, failure to pay tax by the due date could result in a penalty, for each return period, of 10% of the tax collected (or deemed to be collected) by a collector, or the tax payable by a taxpayer, up to a maximum of $500. However, the $500 maximum penalty will no longer apply.
The bulletin also outlines additional penalties that may be levied in association with audit assessments. These penalties range from 10% of the assessment amount for failing to collect or pay tax on taxable supplies, to 25% of an amount assessed for failing to remit tax collected, and even up to 100% of any amount assessed where the tax is determined to have been collected but willfully not remitted.
As explained in the bulletin, interest applies to most tax assessments. However, interest is not levied on penalty charges and may be credited when an overpayment of tax occurs. Additionally, taxpayers may apply for a waiver of penalties and interest under certain circumstances.
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