121 (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 of the Federal Act, as it applies for the purposes of this Act, for a taxation year; (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 of the Federal Act, as it applies for the purposes of this Act, 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 described in clause (a). 2017, c. 8, Sched. 30, s. 7. 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 per cent of the unreported amount described in clause (1) (a); and (b) 50 per cent of the amount determined by the formula, A – B in which, “A” is the total of the amounts that would be determined under paragraphs 1 to 5 of subsection (2) if that subsection applied in respect of the unreported amount described in clause (1) (a), and “B” is any amount deducted or withheld under subsection 153 (1) of the Federal Act, as it applies for the purposes of this Act, that may reasonably be considered to be in respect of the unreported amount described in clause (1) (a). 2017, c. 8, Sched. 30, s. 7. False statements or omissions (2) Every person who, knowingly or under circumstances amounting to gross negligence, makes, participates in, assents to or acquiesces in the making of a false statement or omission in a return, form, certificate, statement, application or answer that is filed or made in respect of a taxation year for the purposes of this Act or a regulation made under this Act or a provision of the Federal Act or of the Federal regulations as that provision applies for the purposes of this Act (in this subsection referred to as a “return”), is liable to a penalty of the greater of $100 and 50 per cent of the total of the following amounts: 1. The amount, if any, by which, i. the amount of tax that would be payable by the person for the taxation year under this Act if, A. the amount of the person’s taxable income or other subject of tax for the taxation year were computed by adding to the taxable income or other subject of tax reported by the person in the person’s return for the taxation year that portion of the person’s understatement of income or other subject of tax that is reasonably attributable to the false statement or omission, and B. the amount of the person’s tax payable under this Act for the taxation year were computed by subtracting from the deductions reported in computing tax payable by the person for the taxation year such portion of any such deduction as may reasonably be attributable to the false statement or omission, exceeds ii. the amount of tax that would be payable by the person for the taxation year under this Act had the amount of the person’s tax payable for the taxation year been assessed on the basis of the information provided in the person’s return. 2. The amount, if any, by which, i. the total of the amounts each of which is an amount that would be deemed by section 84 to have been paid on account of the person’s tax payable under this Act for the taxation year if that amount were calculated by reference to the information provided in the person’s return, exceeds ii. the total of the amounts each of which is an amount that would be deemed by section 84 to have been paid on account of the person’s tax payable under this Act for the taxation return year if that amount were computed without taking into account the false statement or omission. 3. The amount, if any, by which, i. the total of all amounts, each of which is the sum of, A. the amount that would be deemed by subsection 103.2 (3) to be an overpayment that arose during a month in relation to which the taxation year is the base taxation year, as defined in subsection 103.4 (1), on account of liability for tax under this Act of the person, if that amount were calculated by reference to the information provided in the person’s return, and B. the amount that would be deemed by subsection 103.2 (3) to be an overpayment that arose during that month on account of the liability for tax under this Act of an individual in respect of whom the person was a qualified relation for that month, within the meaning of section 103.6, if that amount were calculated by reference to the information provided in the person’s return, exceeds ii. the total of all amounts, each of which is the sum of, A. the amount that is deemed by subsection 103.2 (3) to be an overpayment that arose during a month in relation to which the taxation year is the base taxation year, as defined in subsection 103.4 (1), on account of liability for tax under this Act of that person, and B. the amount that is deemed by subsection 103.2 (3) to be an overpayment that arose during that month on account of the liability for tax under this Act of an individual in respect of whom the person was a qualified relation for that month. 4. The total of all amounts each of which is the amount, if any, by which, i. the sum of, A. the amount that would be deemed by subsection 104 (4) to be an overpayment that arose during a month in relation to which the taxation year is the base taxation year, as defined in subsection 104 (1), on account of the person’s liability under this Act for the taxation year, if that amount were calculated by reference to the information provided in the person’s return, and B. the amount that would be deemed by subsection 104 (4) to be an overpayment that arose during that month on account of the liability under this Act for the taxation year of an individual in respect of whom the person was a cohabiting spouse or common-law partner at the end of the taxation year and at the beginning of that month (in this paragraph referred to as the “spouse”) if that amount were calculated by reference to the information provided in the person’s return, exceeds ii. the sum of, A. the amount that is deemed by subsection 104 (4) to be an overpayment that arose during that month on account of the person’s liability under this Act for the taxation year, and B. the amount that is deemed by subsection 104 (4) to be an overpayment that arose during that month on account of the spouse’s liability under this Act for the taxation year. 5. The amount, if any, by which, i. the sum of, A. the amount that would be deemed by subsection 104.1 (3) to be an overpayment made on account of the person’s tax payable under this Act for a year if that amount were calculated by reference to the information provided in the person’s return, and B. the amount that would be deemed by subsection 104.1 (3) to be an overpayment made on account of tax payable under this Act for a year of an individual (in this paragraph referred to as the “spouse”) in respect of whom the person is a cohabiting spouse or common-law partner, as defined in subsection 104.1 (1), at the end of the taxation year, if that amount were calculated by reference to the information provided in the person’s return, exceeds ii. the sum of, A. the amount that is deemed by subsection 104.1 (3) to be an overpayment on account of the person’s tax payable under this Act for the year referred to in subsubparagraph i A, and B. the amount that is deemed by subsection 104.1 (3) to be an overpayment on account of the spouse’s tax payable under this Act for the year referred to in subsubparagraph i B. 2016, c. 5, Sched. 28, s. 20. Transition (2.1) Subsection (2), as enacted by section 20 of Schedule 28 of the Jobs for Today and Tomorrow Act (Budget Measures), 2016, applies in respect of a return, form, certificate, statement, application or answer that is filed or made on or after the day on which the Jobs for Today and Tomorrow Act (Budget Measures), 2016 receives Royal Assent. 2016, c. 5, Sched. 28, s. 20. Interpretation (3) For the purposes of subsection (2), the taxable income reported by a person in the person’s return for a taxation year shall be deemed not to be less than nil and the “understatement of income” for a year of a person has the meaning assigned to that expression by subsection 163 (2.1) of the Federal Act and shall be determined in the manner required by subsection 163 (4) of that Act.  2007, c. 11, Sched. A, s. 121 (3). Minister’s discretion if collection agreement in force (4) If a collection agreement is in effect, the Federal Minister may refrain from levying or may reduce a penalty imposed under subsection (1) or (2) if the person who is liable to the penalty is required to pay a penalty under section 163 of the Federal Act in respect of the same failure or the same false statement or omission, as the case may be.  2007, c. 11, Sched. A, s. 121 (4). Burden of proof (5) If a penalty assessed under this section is in issue in any appeal under this Act, the burden of establishing the facts justifying the assessment of the penalty is on the Ontario Minister.  2007, c. 11, Sched. A, s. 121 (5). Section Amendments with date in force (d/m/y) 2016, c. 5, Sched. 28, s. 20 - 19/04/2016 2017, c. 8, Sched. 30, s. 7 - 01/01/2015 Penalty re use, etc., of electronic suppression of sales devices