OTTAWA: The Canadian Taxpayers Federation (CTF) today released data obtained through the Access to Information Act which reveals that the federal government collects over 20 times more in penalties and interest owing on back and late taxes than it pays out in refund interest.

"It is clear from this data that penalties and interest charged on back and late taxes rakes in much more than a pretty penny for the federal government," stated CTF federal director Walter Robinson. "If taxpayers needed any more incentive to get their taxes in before midnight tonight, this data should clearly motivate them."

The CTF also pointed out that the penalty for late filing when taxes are owed to the federal government carries an immediate 5% late-filing charge. If taxpayers procrastinate and file their 2000 tax return in June with taxes owing, the penalty jumps to 6%. This tax grab penalty jumps by 1% a month up to 12 months for a maximum penalty of 17%.

"Taxpayers should also remember that these numbers are fluid. While it appears as though there is a decline in the penalties and interest charges over the past few years, this data doesn't tell the whole story," added Robinson. "As tax appeals and tax court proceedings are decided in the coming years, there is no doubt that Ottawa will continue to collect hundreds of millions of dollars in penalties for late taxes owing for recent years."

"So it is extremely important for taxpayers to file on time before this evenings midnight deadline," concluded Robinson. "Ottawa already squanders billions in HRDC grants and corporate welfare subsidies through Industry Canada. By filing on time, taxpayers can ensure that extra revenue is not raised to fuel this wasteful spending fire."