It is always a good idea to file your taxes on time as it allows you to collect any refunds on a timely basis; it also sets up other refund amounts, if applicable, such as GST, Trillium, and Child Tax Benefit. The Notice of Assessment you receive each year after filing, is often required by banks as proof of earnings when negotiating loans and mortgages. Nothing like telling your banker you have not filed in several years and do not have the required paperwork for your loan, always a good start.
The other reason is penalties and interest, if you file your return late and owe taxes there is a 5% penalty on any balance owing, plus 1% per full month the return is late. If you have been late in the past the penalty moves to 10% and 2% for each full month, to a maximum of 20 months. So you could face a 45% penalty for being late. On top of the penalties there is interest starting from the day after the taxes were due, this could be April 30th or earlier if you neglected to pay your installments.
Even if you owe money and cannot pay by the due date you should file on time to avoid the penalties, you can always adjust your return after the fact.
A good accountant is an invaluable resource. MSH Accounting CPA can provide a wealth of knowledge and can help you make sense of your numbers. Contact Mark to get started on the right accounting path.