Tax Penalties Canada

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tax-penalties-canadaMajor Tax Penalties in Canada (part 1)

The following is a list of major tax penalties and offences in Canada based on the type of violation:

Failure to file a tax return: Federal & Quebec will penalize you with 5% of unpaid tax and 1% per full month the return is not filed (max. 12 months).

Failure to file information slips: Federal government will charge $25 per day of failure (min. $100, max. $2500)

Failure by corporation with an annual gross revenue in excess of $1 million to file its corporate income tax return electronically for a year ending after 2010 for a federal tax return and after May 31, 2010 for a Quebec tax return: Federal will fine you $250 for a taxation year that ends in 2o11, $500 if it ends in 2012 and $1,000 if it ends after 2012. Quebec will charge you the same except the $1000 if it ends after May 31, 2013.

False statements or omissions committed knowingly or amounting to gross negligence:  Federal will fine you 50% of additional tax arising from those false statements or omissions (min. $100).  Same with the Quebec Government.

False or deceptive statements made in a return or other document to evade tax: Federal will fine you 50% to 200% of the tax that the taxpayer tried to evade and/or a maximum of two years imprisonment. The Quebec Government will fine you a minimum of $1000 and a maximum of $25,000 and/or a maximum of 2 years imprisonment.

Part 2 of the Tax Penalties Canada is available.

More information on Canadian Tax Penalties in our next instalment.   Stay tuned or contact us for a free accounting consultation today!

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