The penalties for not filing taxes with the Canada Revenue Agency (CRA) can include a late-filing penalty of 5% of the balance owing plus 1% of the balance owing for each full month that the return is late, up to a maximum of 12 months. The CRA may also charge interest on any unpaid amounts. In addition, the CRA may impose a penalty of up to 50% of the unpaid tax or the improperly claimed benefit.