Canada Pension Plan

Marginal note:Penalty for misrepresentation, etc.

• 90.1 (1) The Minister may impose on a person a penalty for each of the following acts or omissions if the Minister becomes aware of facts that in the Minister’s opinion establish that the person has

  • (a) made a statement or declaration, in an application or otherwise, that the person knew was false or misleading;

  • (b) made a statement or declaration, in an application or otherwise, that the person knew was false or misleading because of the non-disclosure of facts;

  • (c) knowingly failed to declare to the Minister all or some of the person’s earnings for a period for which the person received disability benefits;

  • (d) received or obtained by cheque or otherwise a benefit payment to which the person knew that they were not entitled, or a benefit payment that the person knew was in excess of the amount of the benefit payment to which they were entitled, and did not return the cheque or the amount of the benefit payment, or the excess amount, as the case may be, without delay; or

  • (e) participated in, assented to or acquiesced in an act or omission mentioned in any of paragraphs (a) to (d).

• Marginal note:Purpose of penalty

  (1.1) The purpose of the penalty is to promote compliance with this Act and not to punish.

• Marginal note:Maximum penalty

  (2) The Minister may set the amount of the penalty for each act or omission at not more than $10,000.

• Marginal note:Limitation on imposition of penalties

  (3) A penalty shall not be imposed on a person under subsection (1) if

  • (a) a prosecution for the act or omission has been initiated against the person; or

  • (b) five years have passed since the day on which the Minister became aware of the act or omission.

• Marginal note:Rescission, etc., of penalty

  (4) The Minister may rescind the imposition of a penalty under subsection (1), or reduce the penalty,

  • (a) on the presentation of new facts;

  • (b) on being satisfied that the penalty was imposed without knowledge of, or on the basis of a mistake as to, some material fact;

  • (c) on being satisfied that the penalty cannot be collected within the reasonably foreseeable future; or

  • (d) on being satisfied that payment of the penalty would cause undue hardship to the debtor.