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Most Canadian residents are required to file an income tax return for the income they have earned in the previous year. You must file a return if you owe taxes to the government or if you have earnings on which you are required to make contributions towards the Canadian Pension Plan (CPP) .There are other criteria for filing taxes as well.f you owe tax to the government and/or don't file your taxes by the due date, you will be liable to pay interest and penalties to the Canada Revenue Agency (CRA) . Compound daily interest is charged on the unpaid amounts starting from May 1, at a prescribed interest rate.
The taxes you owe to the government are generally paid through withholding (money taken out of your paycheck), estimated tax payments, and payments made when you file your taxes each year. You may not have to file a federal income tax return if your income is below a certain amount. However, you must file a tax return to claim a refundable tax credit or a refund on income tax withheld. Find out if you have to file a tax return. Follow these steps to file a tax return: 1  Determine your filing status - Your marital status and how much your household members pay towards keeping up a home can help you figure out your correct filing status.