Failure to file taxes 'could bankrupt you'

It's better late than never when it comes to your taxes. If you haven't done your taxes for a year or two — or more — "get on it before CRA gets on you," says tax expert Evelyn Jacks. The author of books such as Jacks on Tax and Essential Tax Facts says you may face big penalties and interest charges for procrastinating. "If you voluntarily comply -- that is, file your tax return before you (are ordered) to file -- you will avoid gross negligence and possible tax evasion penalties." Things can get ugly, says John Waters, head of tax and estate planning at BMO Nesbitt Burns, "and repeat failure to file gets even uglier." The Canada Revenue Agency has recently been more aggressive in going after and fining people who don't file.