Did you know that one of the best ways to stay up to date on your tax returns while simultaneously paying the amount you owe the government on time, is to take out a private mortgage loan?
Every year, tax payers have to submit a tax return prior to the due date. Whether tax returns are submitted through a professional or by using the appropriate software, everyone has to follow the same guidelines and submit their returns in due form.
Although it is mandatory to submit tax returns, 10% of tax payers do not submit their annual tax return and then end up owing in back taxes and late fees.
Why is it so important to submit your tax return on time?
The most important reason to submit your tax return on time is to avoid late fees. These penalties are costly and climb rapidly when you owe taxes:
- A late-filing penalty of 5% on your balance owing.
- 1 % of your balance owing for each month that your return is late, for up to a maximum of 12 months.
In addition, if you do not file a return, you will have to pay a failure to report income penalty. This penalty is $25 per day, to a maximum of $2,500.
On top of this, you have to pay interest on the amount you owe the government. This percentage is determined by the Bank of Canada, and changes from year to year. In 2017, the interest rate on debts is 6%.
All the charges mentioned above apply both to businesses and to individuals who did not submit a return. As you can see, debts can climb astronomically if you do not submit a tax return.
What solutions are available to you so that you can abide by government regulations, while avoiding additional charges?
Private mortgage loans
In a situation such as this one, there are numerous benefits to taking out a private mortgage loan, including accessing the capital needed to pay off unpaid taxes.
What is the difference between a loan granted by a bank and one obtained through a private lender? The latter can grant a loan more easily than a bank, as explained in my article, Taking out a second mortgage? Skip the financial institutions!
Another point worth mentioning is that a financial institution will not accept an application if the applicant’s tax returns are not up-to-date. As mentioned in my blog article, a private lender will only require that the amount of the loan be used to repay the amount owing.
Benefits of paying taxes using a private mortgage loan
There are numerous benefits to doing business with Victoria Financial, as a private mortgage loan will allow you to have a clear conscience while avoiding debt. With this loan, you will be able to:
- Reduce your total costs.
- Not have Revenu Québec and Canada Revenue Agency on your trail.
- Pay lower monthly installments.
- Be approved for a mortgage loan without a credit check or an income verification.
- Receive the requested amount in less than one week.
Now you are familiar with the benefits of choosing a private mortgage loan with Victoria Financial to pay your taxes. Why wait? Contact me so I can help you make your payment and save money at the same time.
Contact me via email at maxime.st-laurent@financierevictoria.com or by phone at 1 (877) 220‑7738, ext. 101. Whether you have taxes arrears or not, we can help you.
