Q: Your friend Mary says that she does not have time to file her 2016 personal income tax return. She also admits that the real reason is that she does not have the money as she estimates owing about $2,000. She prefers to wait until this summer when she gets her company bonus to catch up and file her 2016 personal income tax return and pay the amount owing then. You explain to Mary that there is a penalty for not filing the tax return by the due date and in addition, there is an interest penalty for each month that she is late in filing.

a) Calculate Marys penalty with the Canada Revenue Agency (CRA) for not filing by the due date.

b) What is the interest penalty for each month that Marys income tax return is late?