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(5)  This new penalty is for tax preparers who are paid to prepare more than 10 income tax 

returns (for either corporations or individuals) who do not file such tax returns with the CRA 

in electronic format.

(6)  This penalty does not apply if the penalty for false statements or omissions has been 

levied.

(7)  For T1142 information returns, the penalty is the greater of $2,500 and 5% of certain 

property amounts. For T106 information returns, the penalty is $24,000 (see the table 

“Other Selected Federal Filing Deadlines”).

(8)  Late employer payroll remittances are subject to the following penalties: 3% for 

remittances that are less than four days late, 5% for remittances that are four or five days 

late, 7% for remittances that are six or seven days late and 10% for remittances that are 

more than seven days late. Late employer payroll remittances are also subject to a 20% 

“second occurrence” penalty (see note (9) below).

(9) The penalty for a “second occurrence” is imposed where a taxpayer is subject to a “first-

occurrence” penalty in the same calendar year and the failure was made knowingly or 

under circumstances amounting to gross negligence.

Current as of May 3, 2013

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