Even centres with excellent financial controls are sometimes late paying their monthly remittances to the Receiver General and/or filing T4 and T4A Summaries at year end. Penalties are generally between 10% and 20% for late payment of remittances and $200 for late filing of T4 and T4A Summaries. Childcare centres generally cannot afford such penalties. Not-for-profit centres (including registered charities) can appeal the imposition of penalties with the Appeals Division of Revenue Canada. In our experience appeals from not-for-profit organizations are almost always granted. Your centre should write a letter to:

The Appeals Division, Revenue Canada Taxation
88 Metcalfe Avenue, 9th Floor
Ottawa, Ontario
K1P 5L7

The letter should include:

• your Revenue Canada employer registration number

• whether you are a not-for-profit organization or a registered charity (provide them with your registered charitable number if applicable).

• mention that you provide childcare services, that the organization is run by a volunteer Board of Directors not remunerated for their time and effort, and that resources are scarce in this time of fiscal restraint.

• request for a waiver of any penalties. Include a copy of the Notice of Assessment from Revenue Canada setting out the amount owing.

• note why the remittance/forms were filed late (generally oversight resulting from over-work).

• explain that large late filing penalties will have a serious negative financial impact on your operation.

You should hear from Revenue Canada within three months and hopefully your appeal will be accepted.