114 /
Selected Federal Penalty and Offence Provisions
Description
Penalty/Offence
Failure and repeated failure
to file income tax returns
First occurrence—5% plus 1% per complete
month while failure continues (not exceeding
12 months) of unpaid tax
Second occurrence—10% plus 2% per
complete month while failure continues (not
exceeding 20 months) of unpaid tax
1
Failure to file a return or to
comply with certain provisions
of the Income Tax Act
On summary conviction, fine between
$1,000 and $25,000, or both the fine and
imprisonment for a term not exceeding 12
months
Failure to file certain
information returns
Greater of $100 and $25 per day, to a
maximum of 100 days
2
Failure to file foreign-based
information returns
Up to 24 months—$500
3
per month less
any penalty imposed for failure to file an
information return as indicated above
Over 24 months—an additional penalty equal
to 5% of certain property amounts less any
penalty imposed above or for failure to file an
information return
Failure to provide information
on prescribed forms
$100 for every occurrence (includes failure to
disclose Social Insurance Number)
4
Failure to file in a proper manner
$25 for each failure for an individual; $100 for
each failure made by a corporation
5
Failure to report income in year
and in any of three preceding years
10% of amount not reported
6
False statements or omissions
Greater of $100 and 50% of the tax payable on
understatement of income
False statements or omissions on
foreign-based information returns
Greater of $24,000 and 5% of certain property
amounts
7
Refer to notes on the following pages.
Current as of May 3, 2013
© 2013 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms
affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.