Subsection 162(1) - Failure to file return of income
Cases
Carlson v. The Queen, 73 DTC 5192, [1973] CTC 360 (FCTD)
When the taxpayer's accountant was advised that the taxpayer would be away on business in April, he filed an unsigned return on April 30 marked as...
See Also
Levatte Estate v. The Queen, 2019 TCC 177
The final return for a spousal trust was a assessed a late-filing penalty under s. 162(1) of 5% as a result of the return being filed one day...
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| Tax Topics - Income Tax Act - Section 40 - Subsection 40(4) | s. 40(4) avoided the need for an estate to make a principal residence designation | 137 |
Klopak v. Canada (Attorney General), 2019 FC 235
Although the facts are quite unclear, what may have happened is that the Canadian-resident individual, who worked in the U.S. as a subcontractor...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | apparent denial of penalty relief for voluntarily disclosing a tax return error | 453 |
Rousseau v. Agence du revenu du Québec, 2018 QCCQ 7340
The taxpayer, who performed his work for various employers at pipeline sites outside Quebec for most of the taxation years at issue (2003 to...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 2 - Subsection 2(1) | taxpayer, who worked mostly outside Quebec, maintained his family home and other strongest residency ties with Quebec | 318 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4.2) | Quebec Minister advised to take steps under intergovernmental agreement to avoid double taxation | 238 |
Chiang v. The Queen, 2017 TCC 165 (Informal Procedure)
The taxpayer made contributions to his RRSP for the years 1995 to 2005 (except 1998). In preparing his 1995 and 1999 returns, he reported his...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 204.3 - Subsection 204.3(1) | inadvertent overcontributions | 150 |
Friedlander v. The Queen, 2012 DTC 1165 [at 3405], 2012 TCC 163 (Informal Procedure)
After referring to the finding in Les Résidences Majeau v. The Queen, 2010 FCA 28, para. 8 that the due diligence defence extended to situations...
Jay v. The Queen, 2010 DTC 1101 [at 3031], 2010 TCC 122 (Informal Procedure)
The taxpayer, a high school student at a private school, had established a due diligence defence to liability under s. 162(1) for failure to...
Ford v. The Queen, 95 D.T.C 848, [1994] 2 CTC 2395 (TCC)
The taxpayer did not file a 1991 return on or before April 30, 1992 because she had no income tax payable for that year. When a subsequent court...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 161 - Subsection 161(1) | 98 |
Feuiltault v. The Queen, 94 DTC 1657 (TCC)
Before finding the taxpayer liable for late-filing penalties, Lamarre Proulx TCJ. stated (p. 1659):
"I do not have to decide in the instant appeal...
Reemark Chelsea Terraces Project Ltd. v. The Queen, 93 DTC 469, [1993] 1 CTC 2727 (TCC)
Because the penalty under s. 162(1) was to be calculated at the time the return was required to be filed, the penalty in this case was not...
Administrative Policy
11 June 2014 Internal T.I. 2014-0519701I7 - Filing a NIL return to avoid late-filing penalties
Can CRA refuse to accept either a NIL tax return (which does not report any of the transactions on which tax is payable) or a substantially...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | return with substantive missing elements | 117 |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2) | return with substantive missing elements | 61 |
93 C.R. - Q. 51
Although a return of income is required where a non-resident corporation is subject to tax under Part I but is exempt under a treaty, penalties...
Subsection 162(2) - Repeated failure to file
See Also
Hughes v. The Queen, 2017 TCC 95 (Informal Procedure)
The taxpayer filed his return more than eight months after the filing due date for the year in question and had previously been subject to a...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3) | computation of penalty where extension | 98 |
| Tax Topics - Statutory Interpretation - French and English Version | more lenient French version of the repeated-failure-to-file penalty in s. 162(2) preferred to English version | 87 |
Kreuz v. The Queen, 2012 DTC 1201 [at 3514], 2012 TCC 238 (Informal Procedure)
D'Auray J. accepted the taxpayer's argument that the Minister could not impose s. 162(2) penalties in respect of the making of a demand to file...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - General Concepts - Estoppel | 146 | |
| Tax Topics - General Concepts - Res Judicata | 146 | |
| Tax Topics - Income Tax Act - Section 8 - Subsection 8(1) - Paragraph 8(1)(h.1) | 160 |
Ottawa Ritz Hotel Company Limited v. The Queen, 2012 DTC 1172 [at 3427], 2012 TCC 166 (Informal Procedure)
Webb J. took the position that, as a due diligence defence was available for s. 162(1), it should also be available for s. 162(2). In the present...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 129 - Subsection 129(1) | 57 | |
| Tax Topics - Income Tax Act - Section 129 - Subsection 129(3) | RDTOH not extinguished by three-year limitations period on dividend refund | 57 |
Bennett v. The Queen, 96 DTC 1630, [1995] 2 CTC 2308 (TCC)
Although the wording of s. 162(2) allowed a defence of due diligence, it was found (at p. 1634) that such a defence was not established in this...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 165 - Subsection 165(7) | 44 |
Farm Business Consultants Inc. v. The Queen, 95 DTC 200, [1994] 2 CTC 2450 (TCC), briefly aff'd 96 DTC 6085 (FCA)
The taxpayer was found to have committed "gross negligence" (which Bowman TCJ. stated (at p. 205) "implies conduct characterized by so high a...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | goodwill consideration misrepresented as fees | 108 |
| Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Expenditure v. Expense - Goodwill, Trademarks and Customer Lists | 75 |
Subsection 162(2.1) - Failure to file - non-resident corporation
Cases
Cogesco Sevices Ltd. v. Attorney General of Canada, 2013 CF 1238
The taxpayer, which was a non-resident corporation that had no liability for tax as a result of losses, was assessed for $15,000 of penalties...
Exida.Com Limited Liability Company v. Canada, 2010 DTC 5101, 2010 FCA 159
A non-resident corporation which failed to file corporate income tax returns but which had no income taxes payable in Canada was not subject to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | "penalty" does not include nil penalty | 92 |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | purposive interpretation must be consistent with words | 93 |
| Tax Topics - Statutory Interpretation - Territorial Limits | no filing requirement if no connection with Canada | 79 |
See Also
Kokanee Placer Ltd. v. The Queen, 2016 TCC 63 (Informal Procedure)
Before finding the taxpayer liable for a s. 162(7.2) penalty, Paris J stated (at para. 10) that s. 162(2.1) "was a different penalty provision"...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | due diligence defence available but mistaken belief re filing requirement no defence | 192 |
Exida.Com Limited Liability Company v. The Queen, 2009 DTC 1278, 2009 TCC 373 (Informal Procedure), rev'd above.
The taxpayer, which was a non-resident corporation that filed tax returns for the relevant taxation years late but with no tax owing, was liable...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | 114 |
Goar, Allison & Associates Inc. v. The Queen, 2009 DTC 653, 2009 TCC 174 (Informal Procedure)
The taxpayer would not have been liable for a penalty under s. 162(1) because it had no income. Accordingly, s. 162(2.1) could not apply to it.
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Statutory Interpretation - Resolving Ambiguity | 76 |
Administrative Policy
13 January 2005 Internal T.I. 2004-0103291I7 - NRO penalty for failure to file
"The unambiguous language of subsection 162(2.1) clearly indicates that it will apply to all non-resident corporations under an obligation to...
Subsection 162(5)
Paragraph 162(5)(a)
Administrative Policy
27 June 2019 Internal T.I. 2019-0791541I7 - Interaction of 162(5) and (7)
A T1135 form was filed late and with missing information, that did not affect the substance of the form. Should penalties be applied under both...
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| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | a double penalty should only be assessed where this is appropriate and equitable | 118 |
25 January 2010 Internal T.I. 2009-0338601I7 F - Déclaration de renseignements électronique
Is a corporation or business required to file information returns electronically also required to declare that the information provided is...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 150.1 - Subsection 150.1(4) | T183 only required where filer is not the taxpayer | 92 |
Subsection 162(6) - Failure to provide identification number
Administrative Policy
30 May 1990 T.I. (October 1990 Access Letter, ¶1481)
Individuals under 18 are not required to provide a social insurance number if their total income for the year is $2,500 or less.
Subsection 162(7) - Failure to comply
Cases
Chen v. Canada (Attorney General), 2019 FC 1435
After finding that it was reasonable for CRA to decline penalty relief to the taxpayer for filing a T1135 form seven weeks late (along with her...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | CRA refusal appropriate where 2nd failure to timely file T1135, not even with estimates | 252 |
Takenaka v. Canada (Attorney General), 2018 FC 347
The taxpayer, who had no Part I tax payable for her 2011 and 2012 years, decided in 2014 to file returns for those years in order to make Canada...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | CRA to reconsider a penalty imposed for failure to timely file a T1135 by a taxpayer with a nil Part I tax liability | 357 |
| Tax Topics - Income Tax Act - Section 150 - Subsection 150(1.1) - Paragraph 150(1.1)(b) | no requirement for individual with nil Part I tax liability to timely file T1 | 233 |
Exida.Com Limited Liability Company v. Canada, 2010 DTC 5101, 2010 FCA 159
A non-resident corporation which failed to file corporate income tax returns but which had no income taxes payable in Canada was not subject to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(2.1) | no substantive tax liability | 66 |
| Tax Topics - Statutory Interpretation - Ordinary Meaning | purposive interpretation must be consistent with words | 93 |
| Tax Topics - Statutory Interpretation - Territorial Limits | no filing requirement if no connection with Canada | 79 |
See Also
Chan v. The Queen, 2022 TCC 87 (Informal Procedure)
The taxpayer was assessed a penalty under s. 162(7)(a) for failure to file (as required under s. 233.3(3)) T1135 forms regarding a bank account...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Foreign Property - Paragraph (a) | due diligence defence where taxpayer reasonably believed that he was not the beneficial owner of a Bank account in China | 226 |
| Tax Topics - General Concepts - Ownership | taxpayer did not have the beneficial ownership of a bank account which he did not use | 121 |
Moore v. The Queen, 2019 TCC 141 (Informal Procedure)
Shortly after his 2016 return filing due date, the taxpayer (Mr. Moore) realized that he should have been filing T1135 reporting forms as a result...
Apex City Homes Limited Partnership v. The Queen, 2018 TCC 247 (Informal Procedure)
A partnership (Apex) hired a general contractor to construct condos which it then sold. It was required under Reg. 238(2) to file T5018s if its...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 238 - Subsection 238(2) | business of contracting out condos’ construction, and then selling them, was caught | 187 |
RAR Consultants Ltd. v. The Queen, 2017 TCC 214 (Informal Procedure)
The taxpayer was assessed under s. 162(7) for $12,500 in penalties for failure to file T1134 forms in respect of its specified foreign property,...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 233.4 - Subsection 233.4(4) | a foreign affiliate with diminished FMV was not excluded from T1134 reporting | 253 |
Kokanee Placer Ltd. v. The Queen, 2016 TCC 63 (Informal Procedure)
Upon returning to Canada, the taxpayer’s sole shareholder and director (“Stephenson”) filed its 2014 tax return in July 2014 in paper form....
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|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(2.1) | Goar overruled | 47 |
Suissa v. Canada (Attorney General), 2013 DTC 5158 [at 6383], 2013 FC 897
The taxpayers were six family members, each of whom owned a small percentage of some properties in Canada, which were sold at a loss over two...
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|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | penalties on six family members were reasonable but probably unjust | 192 |
Edwards v. The Queen, 2013 DTC 1025 [at 124], 2012 TCC 430 (Informal Procedure)
VA Miller J found that the taxpayer, who spent an equal amount of time in Canada and the UK, was a Canadian resident based on her personal ties to...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 2 - Subsection 2(1) | 69 |
Douglas v. The Queen, 2012 DTC 1114 [at 3083], 2012 TCC 73 (Informal Procedure)
Woods J. found that the taxpayer had a due diligence defence against s. 162(7) penalties in his 2008 taxation year given that the taxpayer had no...
Leclerc v. The Queen, 2010 DTC 1209 [at 3556], 2010 TCC 99 (Informal Procedure)
The taxpayer filed his tax returns for his 2003 and 2006 taxation years several years late. Although no tax was owing by him for those years, he...
Exida.Com Limited Liability Company v. The Queen, 2009 DTC 1278, 2009 TCC 373 (Informal Procedure), rev'd above.
Woods, J. found that if (contrary to her findings), s. 162(2.1) did not apply to the taxpayer (a non-resident corporation that was late in filing...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(2.1) | 106 |
Administrative Policy
CRA Webpage, New reporting requirements for trusts: T3 returns filed for tax years ending after December 30, 2023, updated on 12 March 2024
3.5. Will the CRA provide any relief for penalties if a bare trust does not file their 2023 T3 Return and Schedule 15 by the filing deadline as...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(5) | no s. 163(5) penalty for 2023 taxation year of bare trust unless situation egregious | 191 |
| Tax Topics - Income Tax Act - Section 150 - Subsection 150(1.2) | meaning of express trust | 57 |
27 June 2019 Internal T.I. 2019-0791541I7 - Interaction of 162(5) and (7)
A T1135 form was filed late and with missing information, that did not affect the substance of the form. Headquarters found that “technically”...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(5) - Paragraph 162(5)(a) | a late-filed T1135 with minor missing information could generate double penalties under ss. 162(7) and (5) | 190 |
6 October 2017 APFF Financial Strategies and Instruments Roundtable Q. 14, 2017-0708511C6 F - T1135 and 162(7) penalty
In 2015-0588971C6, CRA indicated that where there has been a voluntary disclosure for failure of the taxpayer to file T1135s for a period of years...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | failure to file a T1135 treated as a misrepresentation – but neglect etc. ground to be determined | 140 |
6 October 2017 APFF Roundtable Q. 1, 2017-0708971C6 F - Inactive Corporations & subs. 162(7) ITA
At the 2016 APFF Conference, CRA indicated that an inactive corporation must file an income tax return, but could file a letter explaining the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 150 - Subsection 150(1) - Paragraph 150(1)(a) | requirement for Canco to file nil T2 returns, but no penalty | 103 |
6 October 2017 APFF Roundtable Q. 2, 2017-0709001C6 F - T4A filing obligation
Where an invoice for services rendered bears a valid GST/HS registration number, would failure to file a T4A result in the application of the...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Regulations - Regulation 200 - Subsection 200(1) | penalty applicable but not necessarily applied for failure to complete fee box | 116 |
May 2016 Alberta CPA Roundtable, Q.17
CRA acknowledges that assessing a s. 162(7) penalty for failure to file T1135s for periods before the normal reassessment period (as potentially...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | onus on CRA re assessing T1135 penalties outside normal statute-barring periods | 57 |
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | T1135 filings for all years required | 33 |
26 May 2016 Alberta CPA Roundtable, 2016-0645001C6 - Failure to file Form T1135
CRA considered that a s. 162(7) penalty for failure to file a T1135 form can be assessed beyond the normal reassessment period (or, under s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | onus to establish carelessness or neglect where failure to file a T1135 | 108 |
12 April 2016 External T.I. 2015-0595461E5 - Australian Super Fund & T1135
An Australian Superannuation Fund (or “Super Fund”) is a government-regulated trust that has been registered and approved by the Australian...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 233.3 - Subsection 233.3(1) - Specified Foreign Property - Paragraph (n) | Australian pension fund subject to 10%-15% tax rate not an exempt fund | 309 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Cost Amount - Paragraph (e) | cost amount of pension rights includes future amounts to which legal entitlement | 184 |
| Tax Topics - Income Tax Act - Section 233.2 - Subsection 233.2(1) - Exempt Trust | Australian Superannuation Fund not an exempt trust due to taxability | 107 |
9 October 2015 APFF Financial Strategies and Instruments Roundtable Q. 4, 2015-0588971C6 F - T1135 and voluntary disclosure
Where there has been a voluntary disclosure for failure of the taxpayer to file T1135s for the past, say, 15 years, the current practice of CRA is...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | currently no waiver of T1135 penalty before 10 years previously | 73 |
15 September 2015 Internal T.I. 2015-0572771I7 - T1135 - Normal Reassessment Period
CRA confirmed its position that, as a s. 216 return is a distinct return from a normal Part I return, it has its own normal reassessment period....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | unlike s. 216 returns, the assessment of s. 162(7) penalties is subject to the same normal reassessment period as for the Part I return | 164 |
14 July 2014 Internal T.I. 2014-0537701I7 F - Voluntary disclosure - T1134 and FAPI
Representatives of a taxpayer initiated a voluntary disclosure for a taxpayer who had not filed T1134s and who had failed to report foreign...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | no time limitation for s. 162(10) penalty | 139 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(10) | s. 162(10) penalty for failure to file T1134s | 134 |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2.4) | penalties for failure to file T1134s | 134 |
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | requirements where undisclosed FAPI | 212 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(iii) | Ho acknowledged | 98 |
5 June 2014 Internal T.I. 2013-0509051I7 - Penalties beyond the Normal Reassessment Period
The level of culpability required to assess beyond the normal reassessment period (in this case, a penalty under s. 162(7)) pursuant to s....
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | carelessness sufficient to assess beyond normal reassessment period | 60 |
17 February 2014 Internal T.I. 2013-0498121I7 - Follow up to XXXXXXXXXX
During a Canadian posting, a diplomat purchased a property in another city for his adult child, and then sold it to the child (without applying...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 116 - Subsection 116(3) | diplomatic exemption/discretion if property sold at loss | 129 |
6 December 2012 Internal T.I. 2012-0458401I7 - Penalties - Foreign Reporting Forms
Respecting whether the penalty under s. 162(5) or (7) should be imposed where foreign reporting forms (e.g., T1134, T1135 or T1142) were...
12 December 2013 Internal T.I. 2013-0497231I7 - Penalties on Foreign Asset Reporting
What are the time limitations for assessing a penalty on foreign asset reporting? After noting that no limitation period for a Part XV information...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | S. 152(4)(a) applies to Part XV returns | 65 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(10.1) | normal reassessment period does not apply | 58 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(10) | normal reassessment period does not apply | 138 |
28 November 2010 CTF Annual Roundtable Q. 4, 2010-0386341C6 - CTF Q#4: Penalties for Late-Filed T2 returns
CRA stated that it was never its:
practice to apply subsection 162(7) penalties on resident corporations that are late in filing their returns...
5 October 2012 APFF Roundtable, 2012-0453211C6 F - Formulaire T1135
In response to a query respecting the Douglas decision, and as to whether CRA has considered providing administrative relief from the penalty...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | criteria for waiver of penalties and interest | 122 |
3 July 2009 Internal T.I. 2009-0312521I7 - Form T106
"Subsection 162(7) is operative only where the Minister serves a reporting person with a demand for the information return, and that person does...
4 January 1996 Internal T.I. 9531516 - T3D, T3P, T3S AS INFORMATION RETURNS
The T3P, T3S and T3R1 forms are information returns for purposes of s. 162(7) by virtue of Regulation 204(1). AT3D (although a tax return) is not...
6 September 1994 External T.I. 9415125 - CONSOLIDATION OF INFORMATION RETURNS
A penalty will not be assessed to individual corporations within a corporate group for failure to make separate T5 information returns, where the...
23 October 1991 Memorandum (Tax Window, No. 12, p. 23, ¶1551)
The Rulings Directorate has never addressed the possibility of applying the penalty in s. 162(7)(b) to a person who fails to obtain a clearance...
Paragraph 162(7)(b)
Cases
Canada v. Bowker, 2023 FCA 133
The taxpayer was found in the Tax Court not to be liable for a gross negligence penalty under s. 163(2) regarding her filing an amended return...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | s. 220(3.1) must be applied based on the taxpayer’s personal circumstances rather than to settle a case on a basis fundamentally at odds with the Minister’s view of the facts and law | 255 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(1) | Galway principle required that a case not be settled on a basis fundamentally at odds with the Minister’s view of the facts and law | 348 |
| Tax Topics - Other Legislation/Constitution - Federal - Tax Court of Canada Rules (General Procedure) - Section 147 - Subsection 147(3) | no support for establishing a 50% to 75% range of solicitor-client costs/ settlement offer contravened Galway principle and was to be ignored | 376 |
| Tax Topics - Statutory Interpretation - Noscitur a Sociis | noscitur a sociis principle applied to limit a provision to matters not addressed in a sister provision | 107 |
| Tax Topics - General Concepts - Judicial Comity | judicial comity would require the Court to justify its departure from the finding of another judge of the same court on the same question | 67 |
Subsection 162(7.01) - Late filing penalty — prescribed information returns
Administrative Policy
30 November 2009 Internal T.I. 2009-0344051I7 F - Pénalités visées par 162(7), (7.01) et (7.02)
Are the T5003 "Tax Shelter Information" return and the T5003 "Statement of Tax Shelter Information" slips considered to be separate information...
5 January 2011 Internal T.I. 2010-0389761I7 F - Application du paragraphe 162(7.01)
Are the penalties under ss. 162(7), (7.01) and (7.02) cumulative? The Directorate responded:
The penalty under subsection 162(7) cannot be...
Penalty for failure to file an information return by the due date (CRA webpage)
We may assess a penalty if you file your information return late. For certain information returns, we have an administrative policy that reduces...
11 April 2014 External T.I. 2013-0515121E5 - Application of 162(7.01) and (7.02) penalties
A taxpayer filed 40 T4As and 40 T5s late for the 2013 year. Does the phrase "the number of those information returns" establish one penalty for...
Paragraph 162(7.01)(b)
Administrative Policy
15 August 2018 Internal T.I. 2018-0748441I7 - Subsection 162(7.01) penalty calculation
How is the penalty under s. 162(7.01) calculated for a person who files 73 T5 slips 8 days after the required filing deadline and a further single...
Subsection 162(7.1) - Failure to make partnership information return
Administrative Policy
10 October 2014 APFF Roundtable Q. 27, 2014-0538211C6 F - 2014 APFF Roundtable, Q. 27 - Various issues re: administration of the Act
Late-filing penalties under s. 162(7.1) generally will not apply when the requirement to file T5013 or T3 returns has been waived by the Minister,...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 150 - Subsection 150(1) - Paragraph 150(1)(a) | reporting of income-generating websites on Sched. 88 (info only, but not bank, sites excluded) | 170 |
19 February 2003 External T.I. 2003-0181425 - Penalties - Partnership Info Returns
In the event that a partnership information return is not filed within the time set out in Regulation 229(5), the partnership, as opposed to the...
Subsection 162(7.3)
Administrative Policy
May 2017 CPA Alberta Roundtable, ITA Q.8
What factors would influence CRA’s assessment of due diligence, and what support would CRA expect the tax preparer to retain to evidence due...
Subsection 162(10) - Failure to furnish foreign-based information
Administrative Policy
RC4651 “Guidance on Country-By-Country Reporting in Canada” 23 November 2018
Presumption of gross negligence after 2017 filing year
Paragraphs 162(10)(a) and (b) of the Act
The penalty under subsection 162(10) of the Act...
14 July 2014 Internal T.I. 2014-0537701I7 F - Voluntary disclosure - T1134 and FAPI
Representatives of a taxpayer initiated a voluntary disclosure for a taxpayer who had not filed T1134s and who had failed to report foreign...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | no time limitation for s. 162(10) penalty | 139 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | penalties under ss. 162(10), (10.1) or 163(2.4) for failure to file T1134s | 134 |
| Tax Topics - Income Tax Act - Section 163 - Subsection 163(2.4) | penalties for failure to file T1134s | 134 |
| Tax Topics - Income Tax Act - Section 220 - Subsection 220(3.1) | requirements where undisclosed FAPI | 212 |
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(b) - Subparagraph 152(4)(b)(iii) | Ho acknowledged | 98 |
12 December 2013 Internal T.I. 2013-0497231I7 - Penalties on Foreign Asset Reporting
What are the time limitations for assessing a penalty on foreign asset reporting? After noting that no limitation period for a Part XV information...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | S. 152(4)(a) applies to Part XV returns | 65 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(10.1) | normal reassessment period does not apply | 58 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | s. 152(4)(a) applies to Part XV returns | 83 |
Subsection 162(10.1) - Additional penalty
See Also
Goldhar v. The King, 2023 TCC 30
In finding that the taxpayer had established a due diligence defence for failure to file T1134 forms for some but not all the taxation years under...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) - Paragraph 152(4)(a) - Subparagraph 152(4)(a)(i) | given the complexity of his international business, it was appropriate for the taxpayer to rely on his accountants | 179 |
Administrative Policy
16 July 2015 Internal T.I. 2015-0590681I7 - Application of paragraph 162(10.1)(e) penalty
Should the computation of the s. 162(10.1)(e) penalty be based on:
- Option 1: the highest of all amounts each of which is the total costs of all...
12 December 2013 Internal T.I. 2013-0497231I7 - Penalties on Foreign Asset Reporting
After discussing (above) the s. 162(10) penalty, CRA stated:
This penalty is reduced by the amount of the penalties in subsections 162(7) and...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 152 - Subsection 152(4) | S. 152(4)(a) applies to Part XV returns | 65 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(10) | normal reassessment period does not apply | 138 |
| Tax Topics - Income Tax Act - Section 162 - Subsection 162(7) | s. 152(4)(a) applies to Part XV returns | 83 |
Subsection 162(11)
Cases
Borealis Geopower Inc. v. The Queen, 2018 TCC 189 (Informal Procedure)
Campbell J found that the taxpayer had received government assistance in its 2014 taxation year, as a result of which its SR&ED expenditures for...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 37 - Subsection 37(1) - Paragraph 37(1)(d) | taxpayer had “physically” received unearned government assistance because it had authority to deal with the funds | 243 |
| Tax Topics - General Concepts - Payment & Receipt | taxpayer had "physically" received govenment assistance funds with freedom to transfer | 109 |