Late Filing and Omission Penalties

ITA Reference Offence Penalty
162(1) Failure to file a tax return by required date. 5% of unpaid tax, plus 1% of unpaid tax for each month in arrears (maximum 12 months).
162(2) Second offence within three years of first offence. 10% of unpaid tax, plus 2% of unpaid tax for each month in arrears (maximum 20 months).
163(1) Failure to report income for second time within three years of first time. 10% of unreported income.
163(2) Evasion – gross negligence. Greater of $100 and 50% of the increased liability on the under-reported income.
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