GST interest and Late fee allowed or Disallowed

This discussion clarifies whether interest and late fees paid on Goods and Services Tax (GST) are allowable expenses under the Income Tax Act. The consensus is that both GST interest and late fees are generally allowed as deductions, as they are incurred for legal compliance rather than as a penalty for breaching the law. However, it's important to distinguish this from penalties, which are typically disallowed. For expenses related to the Income Tax Act itself, interest, penalties, and late fees are not usually deductible.