Rules · TAX
TAX-12 — Late-filing penalties. T2 and T1
Current — Verified against the live source. Safe to cite.
Late-filing penalties. T2 and T1: 5% of the balance owing plus 1% per complete month, to a maximum of 12 months. Repeat case (a demand to file plus a failure-to-file penalty assessed in one of the three previous years): 10% plus 2% per month to 20 months. Repeated failure to report income: applies where $500 or more was unreported in the current year and in one of the three previous years; penalty is the lesser of 10% of the unreported amount and 50% of the understated tax net of amounts withheld. Interest compounds daily
(T2 penalty figures — 5%/1%/12 months and the 10%/2%/20-month repeat scale — confirmed verbatim in the guide text), — Guide 5000-G confirms the penalty exists but not the exact percentages; treat the T1 figures as living-page only
Sources
- T2 penalties (primary)
- T1 penalties (primary)
- https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4012/t2-corporation-income-tax-guide.html (mirror) · local copy