Monthly EPT returns are due by the 10th of the month following the reporting period. To avoid penalty and interest, submit the completed return and payment to Finance by the due date (including nil returns). Penalty and interest charges are applied to taxes that are not remitted by the due date. These charges are necessary to ensure that taxes are collected and remitted on time.
A penalty of 10 per cent of the EPT payable, to a maximum of $500 is applied to each return period. In addition, there is a $75 penalty for failure to remit a return. Interest is charged at the prime interest rate plus 3 per cent from the date the EPT was to have been remitted.
Municipalities should consider adopting a municipal bylaw or policy to authorize that EPT collected for the month can be paid by the due date rather than waiting for a council meeting. Establishing this process will help to avoid the new fines and penalties for late payment. This bylaw would be similar to what you may already have in place for payment of salaries, payroll remittances, utility billings, etc. A sample Expenditure-Authorization bylaw is available online.