Behind on GST, PST or Corporate Taxes in Saskatchewan?

Falling behind on business tax filings can be stressful, but getting caught up may be easier and more affordable than you think.

Running a business comes with many responsibilities. Between managing employees, serving customers, and handling daily operations, bookkeeping and tax deadlines can sometimes fall behind.

Whether your business has missed a few GST or PST returns, has overdue corporate income tax filings, or hasn't updated its accounting records in years, the most important thing is to take action.

Understanding the consequences and knowing where to start can help you regain control of your business finances.

What Happens If Your Business Falls Behind on Tax Filings?

1. Penalties and Interest Can Accumulate

The Canada Revenue Agency (CRA) and Saskatchewan Ministry of Finance may assess penalties and interest on overdue filings and unpaid taxes.

GST/HST: When tax is owing, the CRA generally charges a late-filing penalty of 1% of the outstanding amount, plus an additional 0.25% for each complete month the return is overdue, up to 12 months. Interest also applies to unpaid balances.

Saskatchewan PST: Late filing or payment may result in penalties and interest. Businesses must generally file PST returns even when there is no tax to report.

Corporate Income Tax (T2): The standard late-filing penalty is 5% of unpaid tax due at the filing deadline, plus 1% for each complete month late, up to 12 months. Higher penalties may apply to repeat late filings in certain circumstances.

The longer these obligations remain unresolved, the more expensive they may become.

2. CRA Notices and Collection Actions

Unfiled returns may result in reminders, demands to file, estimated assessments, or additional compliance action.

When taxes remain unpaid, collection measures may eventually include garnishments or other legal collection procedures.

Addressing overdue filings early can help prevent matters from escalating.

3. Uncertainty About Your Business Finances

Outdated bookkeeping makes it difficult to determine your actual profitability, outstanding liabilities, and available cash flow.

It can also complicate financing applications, business planning, and important management decisions.

4. Unnecessary Stress for Business Owners

Not knowing how much your business owes, or worrying about receiving another government notice, can become an ongoing source of stress.

Fortunately, even several years of outstanding filings can often be addressed through an organized catch-up process.

How Can You Catch Up on Overdue Business Taxes?

Step 1: Identify Outstanding Returns

Review your CRA My Business Account and Saskatchewan tax account to determine which GST/HST, PST, corporate income tax, and other required returns remain outstanding.

Step 2: Gather Your Business Records

Collect available bank statements, sales reports, invoices, receipts, payroll records, and prior tax filings.

Even when records are incomplete, an accounting professional can help identify missing information and determine an appropriate reconstruction process.

Step 3: Update and Reconcile Your Bookkeeping

Bring your financial records up to date, reconcile bank and credit card accounts, and determine the amounts required for outstanding tax filings.

Step 4: Prepare and File Overdue Returns

Once the records are sufficiently complete, prepare and submit the required returns.

Important: You generally do not need to wait until you can pay the entire tax balance before filing overdue returns. Filing and paying are separate obligations, and filing sooner may help limit additional late-filing penalties.

Step 5: Explore Payment Arrangements

If your business cannot pay its outstanding taxes immediately, contact the CRA to discuss available payment arrangements.

Remember that interest may continue to accrue on unpaid tax balances, even under an approved payment arrangement.

Step 6: Establish Ongoing Bookkeeping Support

Once the outstanding work is completed, maintaining accurate monthly records and monitoring tax deadlines can help prevent the same situation from happening again.

Is Catch-Up Accounting Expensive?

Not necessarily.

The cost depends on how many periods are outstanding, the condition of your records, transaction volume, and the work required.

Businesses with organized bank statements and accounting records may require significantly less work than those needing extensive bookkeeping reconstruction.

An initial assessment can help establish the scope of work, priorities, and anticipated professional fees before proceeding.

How Bituin Tax and Accounting Services Can Help

At Bituin Tax and Accounting Services CPA Prof. Corp., our CPA-led firm in Regina, Saskatchewan, assists businesses with:

• Catch-up bookkeeping and bank reconciliations

• Overdue GST/HST and Saskatchewan PST filings

• Corporate income tax returns (T2)

• Year-end accounting adjustments

• CRA reviews and correspondence, under separate arrangements where appropriate

• Ongoing monthly bookkeeping, payroll, and tax compliance support

Our objective is to help business owners resolve outstanding accounting and tax obligations and establish a manageable system to stay current.

Flexible Payment Arrangements May Be Available

We understand that businesses requiring catch-up accounting services may also be experiencing cash flow challenges.

That's why flexible payment arrangements for our professional accounting fees may be available, depending on the scope of work and individual circumstances, subject to approval.

Our goal is to make professional accounting assistance more accessible without requiring business owners to delay necessary compliance work.

These arrangements apply to our professional service fees, not government taxes, penalties, or interest.

Frequently Asked Questions

Can I file overdue GST or PST returns even if I cannot pay the taxes yet?

Yes. In general, outstanding returns can and should be filed even when immediate full payment is not possible. Payment obligations remain, and applicable interest may continue.

What if my corporation hasn't filed taxes for several years?

You can work with an accounting professional to reconstruct your records, prepare outstanding T2 returns, and establish a plan to bring your corporate filings up to date.

Will the CRA waive my penalties and interest?

In certain circumstances, the CRA may grant taxpayer relief when events beyond your control prevented compliance. Approval is not automatic, and supporting information may be required.

Can I hire an accountant just to catch up on overdue filings?

Yes. Catch-up bookkeeping and overdue tax preparation can be arranged as a one-time engagement. Ongoing monthly support may also be considered to help maintain compliance.

Do I need to visit your Regina office?

Not necessarily. Bituin offers remote accounting and tax services to eligible businesses across Canada, excluding Quebec, with secure electronic document submission.

Getting Back on Track Starts With One Step

If your business is behind on bookkeeping, GST, PST, or corporate tax filings, you don't have to resolve everything at once.

A clear assessment, an organized catch-up plan, and appropriate professional assistance can help you move forward with greater confidence.

Bituin Tax and Accounting Services CPA Prof. Corp. supports Saskatchewan business owners with practical accounting solutions and year-round professional assistance.

Contact us at bituintaxandaccounting.com or 306-910 9911 to discuss your outstanding filings, accounting needs, and available service options.

Disclaimer: This article provides general information only and does not constitute tax, accounting, or legal advice for a particular situation. Penalties, filing requirements, and relief options depend on individual circumstances and current legislation.