Vlad knows that he should prepare and file his 2022 personal income tax return before the deadline even if he does not have the money to pay for the amount owed. He is aware that Canada Revenue Agency (CRA) will charge arrears interest on his unpaid income taxes according to a prescribed interest rate. He also knows that the interest in arrears is compounded daily on any unpaid balance from the balance due date to the date of payment. Which statement is accurate?

Select one:

a.

If Vlad does not file his income tax return by the due date, he will be charged 5% of the amount owing plus 1% for each additional full month that his return is late, to a maximum of 12 months.

b.

If Vlad does not file his income tax return by the due date, he will be charged 15% of the amount owing plus 1% compounded monthly for each additional full month that his return is late, to a maximum of 12 months.

c.

If Vlad does not file his income tax return by the due date, he will be charged 10% of the refund less the amount owing plus 2% for each additional full month that his return is late, to a maximum of 12 months.

d.

If Vlad does not file his income tax return by the due date, he will be charged 12% of the amount owing plus 1% for each additional full month that his return is late, to a maximum of 12 months.

e.

If Vlad does not file his income tax return by the due date, he will be charged 10% of the amount owing plus 2% for each additional full month that his return is late, to a maximum of 12 months.