The 2012 federal budget announced that the CRA instituted a new administrative policy to ensure that penalties on late-filed information returns are charged in a manner that is both fair and reasonable. Where a business is unable to comply in a timely manner with a reporting obligation related to certain information returns, such as T4s, reduced penalties will be applied when the number of late-filed returns is small.
New penalty regime
The penalty for certain late-filed information returns is the greater of $100 or a penalty determined as follows:
The following information returns are subject to the relieving administrative policy:
- NR4, "Statement of Amounts Paid or Credited to Non-Residents of Canada"
- T4, "Statement of Remuneration Paid"
- T4A, "Statement of Pension, Retirement, Annuity, and Other Income"
- T4E, "Statement of Employment Insurance and Other Benefits"
- T5, "Statement of Investment Income"
- T5018, "Statement of Contract Payments".
For details, contact your KPMG adviser.