CRA suggests that a double penalty should only be assessed where this is appropriate and equitable

A T1135 form was filed late and with missing information, that did not affect the substance of the form. Headquarters found that “technically” both a penalty of $2,500 under s. 162(7) (for late-filing) and of $100 under s. 162(5)(a) for the missing information, could be assessed, but then stated:

We suggest that care be taken to ensure that assessing penalties under subsections 162(5) and (7) is both appropriate based on the relevant facts of a situation and equitable to the tax community as a whole.

Headquarters also noted that for s. 162(7) penalty purposes, “an information return that is missing substantial information will be considered invalid and, therefore, will not be considered to have been filed.”

Neal Armstrong. Summary of 27 June 2019 Internal T.I. 2019-0791541I7 under s. 162(5)(a).