Mar

9

Tax Penalties Canada (Part 2)

Posted by

tax-penaltyThe following is the continuation of our Tax Penalties Canada series.  This is part two.

False or deceptive entries made in records, omissions from records, or destruction of records to evade tax: The Canadian Federal government will charge 50% to 200% of the tax that the taxpayer tried to evade and/or a maximum of two years of imprisonment. Quebec will penalize you with a minimum of $2,000 and a maximum of $1,000,000 and/or a maximum of two years in jail.

False or deceptive statements to obtain a tax shelter identification number or sale of tax shelter before the issuance of that number: Canada will penalize you with 25% of the consideration received for the tax shelter ($500 minimum). Same thing for the Government of Quebec.

Failure to withhold tax: Canada will penalize you with 10% of the unwithheld tax; 20% of the unwithheld tax if late withholding penalty is applicable and failure was made knowingly or under circumstances amounting to gross negligence.  Quebec will penalize you with 15% of the unwithheld tax.

Failure to remit withholding tax to the tax authorities: The Federal Government will charge you 3% of the unremitted tax if tax remittance is 1 to 3 days late, 5% if 4 or 5 days late, 7% if 6 or 7 days late, and 10% if more than 7 days late: 20% of unremitted tax if late remittance penalty is applicable and failure was made knowingly or under circumstances amounting to gross negligence.  Quebec will charge you 7% of the unremitted tax if tax remittance is 1 to 7 days late, 11% if 8 to 14 days late, and 15% if more than 14 days late.

Failure to file electronically information slips that must be filed in this manner after 2009 for federal slips and after 2010 for Quebec slips: The Federal government will charge you $250 if 51 to 250 returns are to be filed electronically, $500 if 251 to 500, $1500 if 501 to 2500, $2500 if more than 2500 (no minimum penalty). Quebec will do exactly the same.

For more information on tax penalties in Canada, please contact us for a free consultation or call (514) 583-9832 now!

Tags: ,

Category: Tax Penalties

About the Author ()

Comments are closed.