CRA states that a gross negligence penalty can be imposed even where no return is filed

Similarly to ITA s. 163(2), the ETA gross negligence penalty provision (s. 285) references the making of “a false statement or omission in a return…statement…or answer” knowingly or in circumstances amounting to gross negligence. CRA asserted that “the gross negligence penalty is potentially applicable even where no GST/HST return has been filed,” and cited Kion, where “natural persons,” who had made false statements to have their profitable business partnership deregistered for GST purposes and had not filed GST returns, were subjected to gross negligence penalties.

Neal Armstrong. Summary of 25 February 2016 CBA Roundtable, Q. 9 under ETA s. 285.