Question
Ms. Deveco's 2022 income tax return is due on April 30, 2023. While she is too busy to file her income tax return on that
Ms. Deveco's 2022 income tax return is due on April 30, 2023. While she is too busy to file her income tax return on that date, she remits a cheque to the government for $10,000, her estimated amount of income tax owing a few days prior to April 30, 2023. The CRA acknowledges receipt on her My Account before April 30, 2023. She has never filed a late return before. She prepares and files her income tax return on May 31, 2023. At this time, the return shows that her actual income tax owing was $9,800. Assuming that the interest rate applicable to late payment of taxes is one-half percent per month without daily compounding, how much will she owe in penalties and interest as a result of the late filing?
A. $49.00
B. $490.00
C. $588.00
D. Nil
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