It is April 24, 2024, and Thia is in a difficult financial situation. She knows that she must file her 2023 personal income tax returns by April 30, 2024. She however has a large amount of tax owing on her Federeal tax return but does not have the money. Her best friend Salimah told her to file her Federal tax return anyway even if she cannot pay. Thia decided this would be a good idea and filed her Federal tax return that afternoon but did not pay the amount of taxes owing. She will only be able to pay the Canada Revenue Agency (CRA) at the end of June, when she gets her company bonus. Which statement is accurate?
Question 8Select one:
a.
Even though Thia filed her 2023 Federal personal income tax return on April 24, 2024, because she did not include a payment for the taxes owing, she will be charged 5% of the amount owing plus 1% for each additional full month that she has not paid in full, to a maximum of 12 months.
b.
Even though Thia filed her 2023 Federal personal income tax return on April 24, 2024, because she did not include a payment for the taxes owing, she will be charged 10% of the amount owing plus 2% for each additional full month that she has not paid in full, to a maximum of 12 months.
c.
Even though Thia filed her 2023 Federal personal income tax return on April 24, 2024, because she did not include a payment for the taxes owing, she will be charged 15% of the amount owing plus 1% compounded monthly for each additional full month that she has not paid in full, to a maximum of 12 months.
d.
Even though Thia filed her 2023 Federal personal income tax return on April 24, 2024, because she did not include a payment for the taxes owing, she will be charged arrears interest on unpaid income taxes according to a prescribed interest rate which is compounded daily on any unpaid balance from the balance due date to the date of payment.
e.
Even though Thia filed her 2023 Federal personal income tax return on April 24, 2024, because she did not include a payment for the taxes owing, she will be charged 12% of the amount owing plus 1% for each additional full month that she has not paid in full, to a maximum of 12 months.