76 (1) Every corporation or person who fails to deliver a return for a taxation year as and when required under this Act is liable to a penalty in the amount calculated using the formula, (0.05 × D) + M (0.01 × D) in which, “D” is the amount, if any, of the deficiency in the corporation’s tax account for the taxation year as of the day the return was required to be delivered, determined under section 79 before taking into consideration the penalty imposed under this subsection, and “M” is the number of complete months, not exceeding 12, from the date on which the return was required to be delivered to the date on which the return is delivered. 1998, c. 34, s. 52 (1); 2004, c. 16, s. 2 (2). Repeated failures to deliver returns (2) Every corporation or person who fails to deliver a return for a taxation year as and when required under this Act, and who has received a demand for a return for the taxation year under subsection 75 (4), is liable to a penalty determined in accordance with the following formula, instead of a penalty under subsection (1), if, before the time the return was required to be delivered, a penalty was assessed under subsection (1) or this subsection against the corporation or person in respect of a return required to be delivered under this Act for any of the three previous taxation years: (0.10 × D) + M (0.02 × D) in which, “D” is the amount, if any, of the deficiency in the corporation’s tax account for the taxation year as of the day the return was required to be delivered, determined under section 79 before taking into consideration the penalty imposed under this subsection, and “M” is the number of complete months, not exceeding 20, from the date on which the return was required to be delivered to the date on which the return is delivered. 1998, c. 34, s. 52 (1); 2001, c. 23, s. 50; 2004, c. 16, s. 2 (2). Saving (3) No corporation is liable to a penalty under subsection (1) for failing to file a return as and when required under subsection 75 (1) if it is reasonable at the time when the corporation would otherwise be required to deliver a return under subsection 75 (1) to consider the corporation to be exempt under subsection 75 (5) from the requirement to file the return.  R.S.O. 1990, c. C.40, s. 76 (3); 2004, c. 16, s. 2 (2). Offence, false statements (4) Every person is guilty of an offence who, (a) makes, participates in, assents to or acquiesces in the making of, false or deceptive statements in a return, certificate, statement or answer delivered or made as required by or under this Act or the regulations; (b) to evade the payment of a tax imposed by this Act, destroys, alters, mutilates, hides or otherwise disposes of records or books of account; (c) makes, assents to or acquiesces in the making of, false or deceptive entries or omits, or assents to or acquiesces in the omission, to enter a material particular in records or books of account; or (d) wilfully, in any manner, evades or attempts to evade compliance with this Act or the payment of taxes imposed by this Act.  R.S.O. 1990, c. C.40, s. 76 (4); 2004, c. 16, s. 2 (2). Penalty (5) Every person who is guilty of an offence under subsection (4) is, in addition to any penalty otherwise provided by this Act, liable on conviction to a fine of not less than the greater of $500 and 50 per cent of the tax payable under this Act and sought to be evaded and not more than double the amount of such tax, or to imprisonment for a term of not more than two years, or to both the fine and the imprisonment.  R.S.O. 1990, c. C.40, s. 76 (5); 2004, c. 16, s. 2 (2). Penalty for false statements (6) Where a person, acting or purporting to act on behalf of a corporation, 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, an incorrect statement or omission (in this subsection referred to as a “false statement”) in a return, certificate, statement or answer (in this subsection referred to as a “return”) delivered or made in respect of a taxation year as required by or under this Act or the regulations, the corporation is liable to a penalty of the greater of $100 and 50 per cent of the total of, (a) the amount, if any, by which, (i) the tax for the year that would be payable by the corporation under this Act if its taxable income or other subject of tax for the year were computed by adding to the taxable income for the year, or other subject of tax reported by it in its return for the year, that portion of the understatement of income, or of any other subject of tax, for the year, as applicable, that is reasonably attributable to the false statement, and if the tax payable for the year under this Act were computed by subtracting from the deductions from tax otherwise payable by the corporation for the year such portion of any such deduction that may reasonably be attributable to the false statement, exceeds, (ii) the tax for the year that would be payable by the corporation under this Act had the tax payable for the year been assessed on the basis of the information provided in the return for the taxation year; (b) the total of all amounts, if any, each of which is the amount by which “A” exceeds “B”, where, “A” is the amount that would be deemed by one of sections 43.2 to 43.13 to be paid for the year by the corporation if that amount were calculated by reference to the amount of the tax credit claimed by the corporation for the year under that section as a payment made on account of its tax for the year, and “B” is the maximum amount that the corporation is entitled to claim for the year under that section as a deemed payment on account of its tax payable for the year.  1996, c. 1, Sched. B, s. 10 (1, 2); 1996, c. 24, s. 28; 1997, c. 43, Sched. A, s. 44; 1998, c. 5, s. 21; 1998, c. 34, s. 52 (3, 4); 2004, c. 16, s. 2 (2); 2004, c. 31, Sched. 9, s. 38. Application of subs. (6) (7) Subsection (6) does not apply if the person has been convicted of an offence under subsection (4) for an offence related to the same evasion of or attempt to evade the payment of tax, unless a penalty is imposed upon the corporation under subsection (6) before the commencement of proceedings against the person under subsection (4).  R.S.O. 1990, c. C.40, s. 76 (7); 2004, c. 16, s. 2 (2). Interpretation (8) For the purposes of subsection (6), the taxable income reported by a corporation in its return for a taxation year shall be deemed not to be less than nil and the “understatement of income” for a year shall be determined in accordance with the rules provided in subsection 163 (2.1) of the Income Tax Act (Canada).  R.S.O. 1990, c. C.40, s. 76 (8); 2004, c. 16, s. 2 (2). Penalty for repeated failure to report an amount (9) Every corporation that fails to report an amount required to be included in computing its income or other subject of tax in a return delivered under section 75 for a taxation year, and that has failed to report an amount required to be so included in any return delivered under section 75 for any of the preceding three taxation years is liable to a penalty equal to 25 per cent of the amount, if any, by which, (a) the tax for the taxation year that would be payable by the corporation under this Act if its taxable income or other subject of tax for the taxation year were computed by including the amount the corporation failed to report, exceeds, (b) the tax for the taxation year that would be payable by the corporation under this Act had the tax been assessed on the basis of only the information provided in the return for the taxation year.  R.S.O. 1990, c. C.40, s. 76 (9); 2004, c. 16, s. 2 (2). Idem (10) Subsection (9) does not apply if the corporation has been assessed a penalty under subsection (6) with respect to a false statement concerning the same amount.  R.S.O. 1990, c. C.40, s. 76 (10); 2004, c. 16, s. 2 (2). Section Amendments with date in force (d/m/y) 1994, c. 14, s. 34 (1) - 01/08/1995; 1994, c. 14, s. 34 (2) - 23/06/1994; 1994, c. 14, s. 34 (3) - see Table of Public Statute Provisions Repealed Under Section 10.1 of the Legislation Act, 2006 - 31/12/2011; 1996, c. 1, Sched. B, s. 10 (1, 3) - 23/02/1994; 1996, c. 1, Sched. B, s. 10 (2, 4) - 01/01/1995; 1996, c. 24, s. 28 - 08/05/1996; 1997, c. 43, Sched. A, s. 44 - 07/05/1997; 1998, c. 5, s. 21 - 01/11/1997; 1998, c. 34, s. 52 (1, 2) - 18/12/1998; 1998, c. 34, s. 52 (3) - 01/07/1998; 1998, c. 34, s. 52 (4) - 01/01/1999 2001, c. 23, s. 50
- 05/12/2001 2004, c. 16, s. 2 (2)
- 01/01/2004; 2004, c. 31, Sched. 9, s. 38 - 16/12/2004