Under subsection 237.1(7.4), every person:

• who files false or misleading information in Form T5001 - Application for Tax Shelter Identification Number and Undertaking to Keep Books and Records, or
• who as a principal or as an agent sells, issues or accepts consideration in respect of a tax shelter before the Minister of National Revenue has issued an identification number

is liable to a penalty that is the greater of both:

• $500
• 25% of the greater of both:
  • the total of all consideration received or receivable in respect of the tax shelter before the correct information is filed with the Minister, or the identification number is issued
  • the total of all amounts stated or represented to be the value of property a person who acquires or invests in the tax shelter could donate to a qualified donee, if the tax shelter is a gifting arrangement and consideration has been received or is receivable before the correct information is filed with the Minister, or the identification number is issued

Forms and publications

• Form T5001, Application for Tax Shelter Identification Number and Undertaking to Keep Books and Records