Details

  • Service: Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 1/30/2012

Canada - Individuals who fail to report income from T-slips may be subject to 20% penalty 

January 30: The Canada Revenue Agency (CRA) is imposing harsh penalties on individuals who do not report income from a T-slip on their tax return—even if the omission was inadvertent.

The CRA has a sophisticated T-slip matching program that verifies the amounts and slips reported on an individual’s tax return with data filed by an employer (T4 slips) or other slips reporting investment or trust income (e.g., T5, T3). This is usually done after the original assessment of your return.


There are several recent examples of the CRA imposing the federal subsection 163(1) penalty, and the provincial equivalent, on taxpayers who have repeatedly failed to report income from information slips on their individual income tax returns. The penalty is a combined 20% federal-provincial rate that may be applied to the amount of the unreported income.


To read a January 2012 edition of TaxNewsFlash-Canada (prepared by the KPMG member firm in Canada): CRA Charging Stiff 20% Penalty For Missing Tax Slip




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