Quick answer: A demand to file means the CRA knows a specific return was never filed and has formally required it by a stated date. The letter changes your legal position: penalties for non-compliance after a demand are steeper than ordinary late-filing, and continued silence invites the CRA to assess the return for you, on its own estimate. The way out is the same as it ever was — file, but the order of operations now matters.
A demand to file carries its own penalty, separate from the tax and separate from the interest. Send us the letter.
On this page
What the demand changes
Before the demand, an unfiled return was late; now non-filing is a named offence. If you still do not file, the CRA can issue an arbitrary assessment — its own estimate, collectible until a real return replaces it, and usually high because it assumes no expenses.
What to do, in order
- Do not call to explain before you have a plan. The productive contact is the one where you can state a filing date you will meet.
- Establish what is actually outstanding, a demand often arrives when more than one period is open. All of it needs a plan, not just the named return.
- Reconstruct and file, oldest first. Bank and processor history can be retrieved; catch-up bookkeeping is a routine engagement, not a rescue.
- If what is unfiled hides something wrong, look at the Voluntary Disclosures Program with an advisor before filing — eligibility has conditions, and a demand affects them, which is precisely why advice comes before action here.
If letters like this have piled up because opening them feels impossible, that is more common than people admit, and worth talking about. Westpeak Wellness offers online counselling in BC, including counselling in Punjabi and in Tagalog.
What it costs from here
Interest has run since the original due date, and late-filing penalties grow with time and repetition — see our penalties guide. The demand adds escalation for ignoring it. Every path is cheaper the earlier it starts. If the demand relates to GST/HST, first confirm how often you need to file GST in Canada — the missed period follows from the account’s filing frequency.
A demand ends when the return is filed, so the real work is getting the filings current.
General information, not tax advice. A letter’s own wording and dates govern — confirm anything that affects a decision by sending us an enquiry.
Common questions about demand to file
Can the CRA really just assess me without my numbers?+
Is it too late for the Voluntary Disclosures Program?+
The demanded date is impossible. Now what?+
Will filing now trigger a deeper look at other years?+
Other CRA letters, decoded
Not sure which letter you have? Start with the full list and match what yours says.
One letter often follows another. These cover the ones owner-managers see most.