Under subsection 237.1(7.5), every person who fails to:

• file an information return in response to a demand by the CRA
• report in the return :
  • the name, address and either the social insurance number or business number of each participant who acquires or otherwise invests in the tax shelter in the year
  • an amount paid by a participant in respect of the tax shelter

is liable to a penalty that is 25% of the greater of:

1. the total of all consideration received or receivable in respect of a tax shelter from a particular person in respect of whom the required information had not been reported at or before the time that the demand was issued or the return was filed
2. if the tax shelter is a gifting arrangement, the total of all amounts stated or represented to be the value of property that the particular person could donate to a qualified donee