Newsgroups: can.general
Path: utzoo!lsuc!dave
From: dave@lsuc.uucp (David Sherman)
Subject: Re: income tax: what's this nonsense?
Date: Thu, 30-Mar-89 22:30:24 EST
Summary: interest, not penalties
Message-ID: <1989Mar30.223032.3240@lsuc.uucp>
Distribution: can
References: <144@mindlink.UUCP> <1989Mar29.002321.5939@gpu.utcs.toronto.edu> <296@torsqnt.UUCP>
Organization: Law Society of Upper Canada, Toronto

In article <296@torsqnt.UUCP> david@torsqnt.UUCP (David Haynes) writes:
>A great problem with this is that RevCan, in its infinite wisdom, will charge
>you late penalties (assuming that you owe them something). 

First of all, don't blame Revenue Canada for the rules.  Parliament
makes the rules, as proposed by the Minister of Finance.  Revenue Canada
enforces and administers the Income Tax Act, whose provisions were
enacted by vote of your Member of Parliament.

Second, what you are describing is not penalties.
Penalties apply only in cases of fraud, misrepresentation
or gross negligence.  What you are referring to is interest,
and it goes both ways.  Interest is calculated at a rate
which approximates the Bank of Canada rate and changes quarterly.
It is compounded daily.  It is paid either to you or by you at
the same rate.  When you get a refund, for example, interest is
calculated from the later of April 30 and the date on which you
actually filed your return.  Similarly, if you miscalculate and
end up owing more than you enclosed by cheque on April 30,
interest will apply at the same rate.  Hardly unfair.

David Sherman
-- 
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