Avoiding penalties

If you do not comply with the requirements and regulations under the Income Tax Act, one or more of the following penalties may apply:

• failure to file penalties
• instalment penalty
• penalty to large corporations
• penalty for not reporting income
• penalty for false statements or omissions
• penalty for misrepresentation in tax matters by a third party
• penalty to non-resident corporations
• penalty for non-compliance with mandatory Internet filing
• other penalties

Sometimes, we will consider cancelling or waiving penalties and interest if the reason for filing late or not paying an amount when it is due may be beyond the taxpayer's control.

Forms and publications

• T2 Corporation - Income Tax Guide (T4012)
• Corporation Instalment Guide (T7B-CORP)