Neymar earned a lot of money in 2022 and knows that he owes...

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Accounting

Neymar earned a lot of money in 2022 and knows that he owes the government for taxes. He is aware that he should have filed his tax returns by April 2023 but is procrastinating due to this big tax liability looming over him. His advisor even encouraged him to file the tax returns even if he did not have the money to pay as the Canada Revenue Agency (CRA) charges arrears interest on unpaid income taxes at the prescribed interest rate, compounded daily. Which statement is accurate?
Select one:
a. If Neymar does not file his income tax return by the due date, he will be charged 12% of the amount owing plus 1% for each additional full month that his return is late, to a maximum of 12 months.
b. If Neymar does not file his income tax return by the due date, he will be charged 15% of the amount owing plus 1% compounded monthly for each additional full month that his return is late, to a maximum of 12 months.
c. If Neymar does not file his income tax return by the due date, he will be charged 5% of the amount owing plus 1% for each additional full month that his return is late, to a maximum of 12 months.
d. If Neymar does not file his income tax return by the due date, he will be charged 10% of the refund less the amount owing plus 2% for each additional full month that his return is late, to a maximum of 12 months.
e. If Neymar does not file his income tax return by the due date, he will be charged 10% of the amount owing plus 2% for each additional full month that his return is late, to a maximum of 12 months.
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