Excise Tax Act (R.S.C., 1985, c. E-15)

Marginal note:False statements or omissions

285 Every person who knowingly, or under circumstances amounting to gross negligence, makes or participates in, assents to or acquiesces in the making of a false statement or omission in a return, application, form, certificate, statement, invoice or answer (each of which is in this section referred to as a “return”) made in respect of a reporting period or transaction is liable to a penalty of the greater of $250 and 25% of the total of

• (a) if the false statement or omission is relevant to the determination of the net tax of the person for a reporting period, the amount determined by the formula

  A - B

  where

  A

  is the net tax of the person for the period, and

  B

  is the amount that would be the net tax of the person for the period if the net tax were determined on the basis of the information provided in the return,

• (b) if the false statement or omission is relevant to the determination of an amount of tax payable by the person, the amount, if any, by which

  • (i) that tax payable

  exceeds

  • (ii) the amount that would be the tax payable by the person if the tax were determined on the basis of the information provided in the return, and

• (c) if the false statement or omission is relevant to the determination of a rebate under this Part, the amount, if any, by which

  • (i) the amount that would be the rebate payable to the person if the rebate were determined on the basis of the information provided in the return

  exceeds

  • (ii) the amount of the rebate payable to the person.