Failure to Report Income Will Result In A Penalty

Taxpayers who fail to report income equal to or exceeding $500 for a second time in a four-year period are subject to a penalty equal to the lesser of the following (Subsections 163(1) and (2); similar provincial penalties also apply):

• 10% of the unreported amount; and
  

• 50% of the taxes payable when the omission is corrected, considering the income, deductible expenses, and credits such as EI and CPP premiums attributable to the unreported source deductions.

The risk of a missing slip is very high this year as a lot of T4, T4A, T3 and T5 slips were not posted to the CRA site for downloading. Please review your tax return to ensure all sources of income were reported.