Failure to deduct

The CRA can assess you for the amount of tax that you failed to deduct. The CRA can also assess a penalty of 10% of the required amount of Part XIII tax you failed to deduct.

When you are assessed this penalty more than once in a calendar year, the CRA may apply a 20% penalty to the second or later failures if they were made knowingly or under circumstances of gross negligence.

Date modified:

2016-12-15