T2 late-filing penalty calculator.

How the T2 late-filing penalty works

A corporation's T2 return is due six months after the end of its tax year. If it is filed late, CRA's T2 guide sets the penalty at 5% of the tax unpaid at the filing deadline plus 1% of that unpaid tax for each complete month the return is late, up to 12 months. If CRA demanded the return and assessed a late-filing penalty in any of the previous three years, the penalty is 10% plus 2% per complete month, up to 20 months.

Worked example. $10,000 unpaid at the deadline and a return filed 3 complete months late: 5% + 3% = 8%, or $800. Filed 12 or more months late: 5% + 12% = 17%, or $1,700.

Limits

The base is the tax still unpaid on the filing deadline, not the balance on the day you file. Arrears interest, the separate $1,000 penalty for not filing electronically where required, the non-resident and large-corporation penalties, and relief for taxpayer circumstances are not included. Most corporate tax is due two months after year end, or three months for a qualifying CCPC, and that earlier date is shown for reference.