GST/HST Memorandum 16.2 Penalties and Interest 9 January 2009

5. Once a retroactive amendment to Part IX of the Act is enacted, interest is calculated retroactively on any resulting amount due. …

6. While cases may arise where interest is computed retroactively, no penalty will be imposed retroactively as a result of an amendment to Part IX of the Act.

Listing of penalties excluded from limitation period

78. Generally, the Minister may not assess a penalty more than four years after the person became liable for the penalty. However, there is no time limitation for assessing the following penalties:

• the 6% penalty assessed under section 280;

• the failure-to-file penalty under section 280.1;

• the penalty for false statements and omissions under section 285; and

• the third party penalty under section 285.1.