AFM362 Chapter Notes - Chapter 14: False Statement
SchoolUniversity of Waterloo
DepartmentAccounting & Financial Management
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Filing Deadlines: The Act requires taxpayers to file returns by a specified date.
Corporations: Within six months after the end of the taxation year.
Individuals: On or before April 30 of the next year, unless an individual or the
individual’s cohabiting spouse carried on a business in the year, in which case the
filing deadline is June 15 of the following year.
Deceased Individuals: Where an individual has died after October of a particular
year and before the filing date for that year (April 30th or June 15th), the return for
the particular year of the deceased must be filed by the legal representative by the
(a) Six months after the date of death
(b) The usual filing date
Trusts or Estates: Within 90 days after the end of the ta xation year.
Requirement to File a Return: Corporations must file each year. Individuals only file if
one of the following applies:
- A balance of tax is owing for the year
- A capital property has been disposed of in the year
- A non-resident individual has a taxable capital gain
- The individual’s HBP or LLP is a positive amount
- A return is demanded by the Minister
Penalties for Late Filing:
- 5% of the tax unpaid at the date on which the return was due to be filed. An
additional 1% for each month the return was late, up to 12 months.
- If the taxpayer has already been assessed a late filing penalty in any of the last
three years then: 10% of the tax unpaid at the date on which the return was due
to be filed. An additional 2% for each month the return was late, up to 20 months.
Failure to report income – repeat offender
Lesser of income not reported * 10% and
50% of tax liability
False statement or omissions – knowingly
or gross negligence
Maximum = increased tax liability * 50%
Late or deficient instalments
50% * [Interest charged minus
the greater of:
(b) 25% of interest that would
have been charged if no
instalments were made ]
Third party: Planner’s penalty
Minimum = $1,000
Maximum = Fee charged for the planning
Third party: Preparer’s penalty
Minimum = $1,000
Maximum = $100,000 + Fee Charged
Limited to: 50% * tax on unreported income
Failure to provide information
$100 per failure
Failure to file electronically (required to if
revenue > $1 M)
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