Income Tax Act — I-3.3 163
Repeated failure to report income 163 (1) Every person is liable to a penalty who (a) fails to report an amount, equal to or greater than $500, required to be included in computing the person’s income in a return filed under section 150 for a taxation year (in this subsection and subsection (1.1) referred to as the unreported amount ); (b) had failed to report an amount, equal to or greater than $500, required to be included in computing the person’s income in any return filed under section 150 for any of the three preceding taxation years; and (c) is not liable to a penalty under subsection (2) in respect of the unreported amount. Amount of penalty (1.1) The amount of the penalty to which the person is liable under subsection (1) is equal to the lesser of (a) 10% of the unreported amount, and (b) the amount determined by the formula 0.5 × (A – B) where A is the total of the amounts that would be determined under paragraphs (2)(a) to (g) if subsection (2) applied in respect of the unreported amount, and B is any amount deducted or withheld under subsection 153(1) that may reasonably be considered to be in respect of the unreported amount. False statements or omissions (2) Every person who, knowingly, or under circumstances amounting to gross negligence, has made or has participated in, assented to or acquiesced in the making of, a false statement or omission in a return, form, certificate, statement or answer (in this section referred to as a “return”) filed or made in respect of a taxation year for the purposes of this Act, is liable to a penalty of the greater of $100 and 50% of the total of (a) the amount, if any, by which (i) the amount, if any, by which (A) the tax for the year that would be payable by the person under this Act exceeds (B) the amounts that would be deemed by subsections 120(2) and (2.2) to have been paid on account of the person’s tax for the year if the person’s taxable income for the year were computed by adding to the taxable income reported by the person in the person’s return for the year that portion of the person’s understatement of income for the year that is reasonably attributable to the false statement or omission and if the person’s tax payable for the year were computed by subtracting from the deductions from the tax otherwise payable by the person for the year such portion of any such deduction as may reasonably be attributable to the false statement or omission exceeds (ii) the amount, if any, by which (A) the tax for the year that would have been payable by the person under this Act exceeds (B) the amounts that would be deemed by subsections 120(2) and (2.2) to have been paid on account of the person’s tax for the year had the person’s tax payable for the year been assessed on the basis of the information provided in the person’s return for the year, (b) [Repealed, 1994, c. 7, Sch. VII, s. 17] (c) the total of all amounts each of which is the amount, if any, by which (i) the amount that would be deemed by subsection 122.61(1) to be an overpayment on account of the person’s liability under this Part for the year that arose during a particular month or, where that person is a cohabiting spouse or common-law partner (within the meaning assigned by section 122.6) of an individual at the end of the year and at the beginning of the particular month, of that individual’s liability under this Part for the year that arose during the particular month, as the case may be, if that total were calculated by reference to the information provided exceeds (ii) the amount that is deemed by subsection 122.61(1) to be an overpayment on account of the liability of that person or that individual, as the case may be, under this Part for the year that arose during the particular month, (c.1) the amount, if any, by which (i) the total of all amounts each of which is an amount that would be deemed by section 122.5 to be paid by that person during a month specified for the year or, where that person is the qualified