Table of penalties

In this table, except for the last row, "Yes" means that you may face a penalty for non-compliance, while "No" means you won't face a penalty. 

Possible non-compliance penalties relating to foreign reporting
Penalties (based on applicable section of the Income Tax Act) Form T106 Form T1134 Form T1135 Form T1141 Form T1142
162(7) – Failure to comply Yes Yes Yes Yes Yes
162(10)(a) – Failure to furnish foreign-based information Yes Yes Yes Yes No
162(10)(b) – Failure to furnish foreign-based information Yes Yes Yes Yes Yes
162(10.1) – Additional penalty No Yes Yes Yes No
163(2.4) – False statement or omission Yes Yes Yes Yes Yes
233.5 – Due diligence exception No Yes No Yes No

Failure to file

False statements and omissions

In the case of Form T1142, the penalty is the greater of either $2,500 or 5% of whichever of the following the false statement or omission was made about: the fair market value of the distributed property; or unpaid indebtedness.

In the case of the other information returns, the penalty is the greater of either $24,000 or 5% of whichever of the following the false statement or omission was made about: the cost of the foreign property; the fair market value of the property transferred or loaned to the trust; or the cost of the shares and indebtedness of the foreign affiliate.

 

Due diligence exception

Forms and publications

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