Excise Tax Act — E-15 285.1
n (in subsections (6) and (15) referred to as the “other person”) for a purpose of this Part is liable to a penalty in respect of the false statement. Amount of penalty (3) The penalty to which a person is liable under subsection (2) in respect of a false statement is (a) if the statement is made in the course of a planning activity or a valuation activity, the greater of $1,000 and the total of the person’s gross entitlements, at the time at which the notice of assessment of the penalty is sent to the person, in respect of the planning activity and the valuation activity; and (b) in any other case, $1,000. Penalty for participating in a misrepresentation (4) Every person who makes, or participates in, assents to or acquiesces in the making of, a statement to, or by or on behalf of, another person (in this subsection, subsections (5) and (6), paragraph (12)(c) and subsection (15) referred to as the “other person”) that the person knows, or would reasonably be expected to know but for circumstances amounting to culpable conduct, is a false statement that could be used by or on behalf of the other person for a purpose of this Part is liable to a penalty in respect of the false statement. Amount of penalty (5) The penalty to which a person is liable under subsection (4) in respect of a false statement is the greater of (a) $1,000, and (b) the lesser of (i) the total of $100,000 and the person’s gross compensation, at the time at which the notice of assessment of the penalty is sent to the person, in respect of the false statement that could be used by or on behalf of the other person, and (ii) 50% of the total of all amounts each of which is (A) if the false statement is relevant to the determination of net tax of the other person for a reporting period, the amount determined by the formula A - B where A is the net tax of the other person for the period, and B is the amount that would be the net tax of the other person for the period if the statement were not a false statement, (B) if the false statement is relevant to the determination of an amount of tax payable by the other person, the amount, if any, by which (I) that tax payable exceeds (II) the amount that would be the tax payable by the other person if the statement were not a false statement, and (C) if the false statement is relevant to the determination of a rebate under this Part, the amount, if any, by which (I) the amount that would be the rebate payable to the other person if the statement were not a false statement exceeds (II) the amount of the rebate payable to the other person. Reliance in good faith (6) For the purposes of subsections (2) and (4), a person (in this subsection and in subsection (7) referred to as the “advisor”) who acts on behalf of the other person is not considered to have acted in circumstances amounting to culpable conduct in respect of the false statement referred to in subsection (2) or (4) solely because the advisor relied, in good faith, on information provided to the advisor by or on behalf of the other person or, because of such reliance, failed to verify, investigate or correct the information. Non-application of subsection (6) (7) Subsection (6) does not apply in respect of a statement that an advisor makes, or participates in, assents to or acquiesces in the making of, in the course of an excluded activity. False statements in respect of a particular arrangement (8) For the purpose of applying this section (other than subsections (4) and (5)), (a) where a person makes or furnishes, participates in the making of or causes another person to make or furnish two or more false statements, the false statements are deemed to be one false statement if the statements are made or furnished in the course of (i) one or more planning activities that are in respect of a particular arrangement, entity, plan, property or scheme, or (ii) a valuation activity that is in respect of a particular property or service; and (b) for greater certainty, a par