Penalties

Late-filing and failure to file the T5 information return

We consider your return to be filed on time if we receive it or if it is postmarked on or before the due date.

The minimum penalty for late filing the T5 information return is $100 and the maximum penalty is $7,500. For the complete penalty structure, go to Penalty for failure to file an information return by the due date.

Failure to provide information on a return

Anyone who prepares an information return has to make a reasonable effort to get the necessary information, including identification numbers, from the individuals, corporations, or partnerships that will receive the slips.

If you do not do this, you may be liable to a $100 penalty for each failure to comply with this requirement.

Penalty for failure to file information returns over the Internet

As of January 1, 2016, if you file more than 50 information returns for a calendar year and you do not file the returns by Internet file transfer or Web Forms, you may have to pay a penalty as determined in the table below.

Each slip is an information return, and the penalty we assess is based on the number of information returns filed in an incorrect format. The penalty is calculated per type of information return. For example, if you file 51 T5 slips and 51 T5008 slips on paper, we would assess two penalties of $250, one per type of information return.

Penalty based on the number of information returns (slips)

Number of information returns (slips) by type	Penalty
51 to 250	$250
251 to 500	$500
501 to 2,500	$1,500
2,501 or more	$2,500

Failure to provide an identification number

Individuals, trusts, corporations, or partnerships have to give their social insurance number (SIN), trust account number or business number (BN) on request to anyone who has to prepare an information slip for them. A person or partnership that does not do so is liable to a $100 penalty for each failure to comply with this requirement. This penalty does not apply if the person or partnership had applied for, but had not yet received, a SIN, a BN or account number at the time the return was filed.

A person who does not have an identification number must apply for one within 15 days of the date of an information request. After receiving the identification number, the person has 15 days to provide it to the person who is preparing an information return.

Failure to provide a social insurance number (SIN) on a return

Make sure the SIN and name you enter on the T5 slip for each recipient are correct.

If the individual does not give you his or her SIN, you have to be able to show that you made a reasonable effort to get it. For example, if you contact a recipient by mail to ask for his or her SIN, be sure to record the date of your request and keep a copy of any correspondence that relates to it. If you do not make a reasonable effort to get a SIN, you may be subject to a penalty of $100 for each failure. If you cannot get a SIN from the recipient, file your information return, without the SIN, no later than the last day of February following the calendar year to which the information return applies. If you do not, you may be subject to a penalty.

A person who does not have a SIN can apply for one at any Service Canada Centre.

For more information, see Information Circular IC82-2R2, Social Insurance Number Legislation that Relates to the Preparation of Information Slips, or visit Service Canada.

Using the identification number

If you have to prepare an information return, or if you are an officer, employee, or agent of someone who does, you cannot knowingly use or communicate an identification number, or allow it to be communicated, without the written consent of the individual, taxpayer, or partnership, other than as required or authorized by law or for the purpose for which the number was provided.

If you use an identification number for unauthorized purposes, you may be guilty of an offence. If convicted, you are liable to a maximum fine of $5,000 or imprisonment of up to 12 months, or both.

Interest

If you fail to pay an amount, we can apply interest from the day your payment was due. The interest rate we use is the prescribed rate that is determined every three months. Interest is compounded daily. We also apply interest to unpaid penalties. For the prescribed interest rates, go to Prescribed interest rates.

Cancelling or waiving penalties and interest

The taxpayer relief provisions of the Act give us some discretion to cancel or waive all or part of any interest charges and penalties. This allows us to consider extraordinary circumstances that may have prevented you from fulfilling your obligations under the Act. For more information, see Taxpayer relief provisions or Information Circular IC07-1, Taxpayer Relief Provisions.

Notice of assessment

We will issue a notice of assessment for the T5 information return only if we apply a penalty.

Forms and publications

• Information Circular IC07-1, Taxpayer Relief Provisions
• Information Circular IC82-2, Social Insurance Number Legislation that Relates to the Preparation of Information Slips

Date modified:

2017-01-18