Penalties and interest for FHSA

Find out about the penalties associated with late filing or failure to file information returns electronically for the first home savings account (FHSA) and how to request to cancel or waive penalties or interest. 

Penalties

Penalties may be applied for late filing a T4FHSA annual information return, failure to file information returns electronically or missing information. A notice of assessment for the T4FHSA annual information return will be issued only if a penalty is applied. To avoid a late filing penalty, file your T4FHSA annual information return on time. For more information about the due date, go to When to file the T4FHSA annual information return.

You must complete a T4FHSA annual information return if you have prepared one or more T4FHSA individual records.

A T4FHSA annual information return consists of both the:

• T4FHSA individual records    

• related T4FHSA return summary

Late filing penalty

The minimum penalty for late filing the T4FHSA annual information return is $100 and the maximum penalty is $7,500. 

Penalty for failure to file information returns electronically

The minimum penalty for failure to file information returns over the internet is $125 and the maximum penalty is $2,500. 

Failure to provide information on a return

Anyone who prepares a T4FHSA annual information return must make a reasonable effort to get the individual's:

• Social Insurance Number (SIN)

  or

  Temporary Tax Number (TTN)

• Date of birth

  (Exception: Enter zeros for Beneficiary records if the date of birth is unknown.)

Ensure that the information is correct

Make sure that the SIN or TTN you enter on each T4FHSA individual record matches the FHSA recipient's SIN or valid TTN. You must also ensure that the name and date of birth match the information in our records.

If an individual does not have a SIN

An individual who does not have a SIN can apply for one at any Service Canada Centre. For more information, go to Information Circular IC82-2, Social Insurance Number Legislation that Relates to the Preparation of Information Slips or visit Service Canada.

Use or communicate an individual's SIN or TTN only for authorized purposes

If you have to prepare a T4FHSA annual information return, or if you are an officer, employee, or agent of a person who does, you cannot use or communicate an individual’s SIN or TTN, or allow it to be communicated, other than as required or authorized by law, or for the purpose for which it was provided.

If you use an individual's SIN/TTN for unauthorized purposes, you may be guilty of an offence and liable, if convicted, to a maximum fine of $5,000 or imprisonment of up to 12 months, or both.

Interest

If you do not pay an amount owing, we may apply interest from the day your payment was due. We charge interest, compounded daily at a prescribed rate, on the total amount of penalties and interest outstanding. For the prescribed interest rates, go to Prescribed interest rates. Interest and penalties are payable to the Receiver General of Canada.

Cancelling or waiving penalties or interest

We administer legislation, commonly called taxpayer relief provisions, that allows us discretion to cancel or waive penalties and interest when taxpayers cannot meet their tax obligations due to circumstances beyond their control.

Our discretion to grant relief is limited to any period that ended within 10 calendar years before the year in which a request is made.

For penalties, we will consider your request only if it relates to a tax year or fiscal period ending in any of the 10 calendar years before the year in which you make your request.

How to make a request to cancel penalties or interest

You or your authorized representative can make a request to cancel penalties or interest online through My Business Account or Represent a Client by:

• using the "Request relief of penalties and interest" service; or 
• filling out Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties and Interest, and selecting the "Submit documents" service. 

You can also send Form RC4288 by mail to the designated office, as shown on the last page of the form, based on your place of residence.

For more information about how to submit documents online, go to Submit documents online. For more information about relief from penalties or interest and the related forms and publications, go to Cancel or waive penalties and interest.