Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note:Penalty for late or deficient instalments

163.1 Every person who fails to pay all or any part of an instalment of tax for a taxation year on or before the day on or before which the instalment is required by this Part to be paid is liable to a penalty equal to 50% of the amount, if any, by which

• (a) the interest payable by the person under section 161 in respect of all instalments for the year

exceeds the greater of

• (b) $1,000, and

• (c) 25% of the interest that would have been payable by the person under section 161 in respect of all instalments for the year if no instalment had been made for that year.