If the Canada Revenue Agency (CRA) accepts your late, amended, or revoked election request, you are liable to a penalty.

The penalty is the lesser of the following amounts:

1. $8,000; or
2. $100 for each complete month from the election's original due date to the date your request was made in a form satisfactory to the CRA.

The date on which you made the request in a form satisfactory to the CRA is when you have provided the CRA with complete and accurate information for the election under review. Please see Information you must include with your request for details about providing complete and accurate information.

Payment of the penalty amount

• It is CRA policy not to accept late, amended, or revoked elections, or to process or adjust the income tax return, unless the penalty amount noted above is paid.
• Penalty payments should be sent to the CRA with your request.
• The CRA will determine and assess any unpaid balance of the penalty, which the taxpayer must immediately pay.

Relief from the penalty

In certain circumstances, the CRA may cancel or waive the penalty amount. For more information, please see Cancel or waive penalties or interest.

Note: A request to waive the penalty amount may be submitted with the request to file a late, amended, or revoked election. You do not have to file a separate penalty relief request.

Related topics

• Cancel or waive penalties or interest
• Late, amended, or revoked elections
• Refund or reduce the amount payable beyond the normal three-year period