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Most Canadian residents are required to file an income tax return for the income they have earned in the previous year. You must file a return if you owe taxes to the government or if you have earnings on which you are required to make contributions towards the Canadian Pension Plan (CPP) .There are other criteria for filing taxes as well.f you owe tax to the government and/or don't file your taxes by the due date, you will be liable to pay interest and penalties to the Canada Revenue Agency (CRA) . Compound daily interest is charged on the unpaid amounts starting from May 1, at a prescribed interest rate.
NETFILE is available to most taxpayers. However some types of tax returns canât be sent electronically. For a list of exceptions, see âRestrictionsâ and âOther restrictionsâ below.Tax preparation service providers canât use NETFILE to file tax returns for their clients. They have to use EFILE. you are a non-resident of Canada; or. 2  you have income from a business with a permanent establishment outside your province or territory of residence (you have to fill out Form T2203, Provincial and Territorial Taxes for 2014 â Multiple Jurisdictions). 3  See our list of other restrictions below.