Penalties and interest for logging tax

If you do not file your logging tax return by the filing due date, you will be charged penalties and interest.

If you're require to make instalment payments, you'll need to pay by the instalment payment due dates. If you miss any of these payment dates or have deficient payments, you'll be charged interest.

Penalties

Late filing penalties

Late filing penalties are assessed if you did not file your return and pay your tax by the filing due date. The penalty is calculated as:

Penalty = (5% x A) + (1% x A x B)

A = the balance owing for the taxation year on the filing due date

B = the number of months, up to a maximum of 12 complete months, from the filing due date to the earlier of:

• The date you filed the return, and
• The date you were assessed a penalty

Late filing penalties for repeated failure to file are assessed if you:

• Were issued a written demand to file your return and did not file your return within the time specified in the written demand to file the return, and

• Had been assessed late filing penalties in any of the 3 previous calendar years.

In this case, the penalty is calculated as:

Penalty = (10% x A) + (2% x A x C)

A = the balance owing for the taxation year on the filing due date

C = the number of months, up to a maximum of 20 complete months, from the filing due date to the earlier of:

• The date you filed the return, and
• The date you were assessed a late filing penalty for repeated failure to file

Penalty for failure to notify beginning or discontinuing logging operations

If you do not notify us when you start logging operations in British Columbia, you will be assessed a penalty equal to $500. 

If you do not notify us when you stop logging operations, you will be assessed a penalty equal to $500.

Interest

Interest is assessed at a rate of prime plus 3 percent for:

• Late or deficient instalment payments
• Late payments of the balance owing