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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

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