Petroleum and Gas Revenue Tax Act — P-12 17
Penalties 17 (1) Every person who fails to file a return of production revenue as and when required by subsection 11(1) is liable to a penalty of (a) an amount equal to five per cent of the tax under this Part that was unpaid when the return was required to be filed; and (b) the product obtained when one per cent of the tax under this Part that was unpaid when the return was required to be filed is multiplied by the number of complete months, not exceeding twelve, in the period between the date on which the return was required to be filed and the date on which the return was filed. Evasion (2) Every person who wilfully attempts to evade payment of the tax payable by him under this Part by failing to file a return of production revenue as and when required by subsection 11(1) is liable to a penalty of fifty per cent of the amount of the tax sought to be evaded. False statements, etc. (3) Every person who, knowingly or under circumstances amounting to gross negligence in the carrying out of any duty or obligation imposed by or under this Act, makes or participates in, assents to or acquiesces in the making of, a false statement or an omission in a return, form, certificate, statement or an answer, in this section referred to as a “return”, filed or made in respect of a taxation year as required by or under this Act is liable to a penalty of twenty-five per cent of the amount, if any, by which (a) the tax for the year that would be payable under this Part by the person if the production revenue of the person for the year were computed by adding to such revenue reported in the person’s return for the year that portion of the understatement of such revenue for the year that is reasonably attributable to the false statement or omission, exceeds (b) the tax for the year that would have been payable under this Part by that person had his tax payable for the year been assessed on the basis of the information provided in his return for the year. Understatement of revenue (4) For the purposes of subsection (3), the production revenue reported in a return of a person for a taxation year shall be deemed not to be less than nil and the understatement of production revenue for the year of a person means the aggregate of (a) the amount, if any, by which (i) the aggregate of amounts that were not reported by that person in his return and that were required to be included in computing that revenue for the year exceeds (ii) the aggregate of such of the amounts deductible by that person in computing that revenue for the year under this Part as were wholly applicable to the amounts referred to in subparagraph (i) and were not deducted by him in computing that revenue for the year reported by him in his return, and (b) the amount, if any, by which (i) the aggregate of amounts deducted by that person in computing that revenue for the year reported by him in his return exceeds (ii) the aggregate of such of the amounts referred to in subparagraph (i) as were deductible by him in computing that revenue for the year in accordance with this Part. Burden of proof (5) Where, in any appeal under this Act, any penalty assessed by the Minister under this section is in issue, the burden of establishing the facts justifying the assessment of the penalty is on the Minister. R.S., 1985, c. P-12, s. 17; R.S., 1985, c. 2 (2nd Supp.), s. 12