Electronic Filing and Provision of Information (GST/HST) Regulations

Marginal note:Penalty amount — sections 5 and 6

7 The penalty under section 284.01 of the Act in respect of a particular amount that is in respect of a specified return for a particular reporting period of a person and that is prescribed, for the purposes of that section, by subsection 5(3) or section 6 is equal to the sum of

• (a) an amount (in this section referred to as the “base penalty”) equal to 5% of the amount determined by the formula

  A - B

  where

  A

  is the particular amount, and

  B

  is

  • (i) if the person failed to report the particular amount as and when required, zero, or

  • (ii) if the person misstated the particular amount, the amount reported by the person in the specified return; and

• (b) the amount obtained when one-fifth of the base penalty is multiplied by the number of complete months, not exceeding five, that are included in the period that begins on the day on or before which the specified return was required to be filed and that ends on the earlier of

  • (i) the day on which the person reports the particular amount and identifies the particular reporting period to the Minister in writing or in any other manner satisfactory to the Minister, and

  • (ii) the day on which the Minister sends a notice of assessment that includes an assessment of the net tax for the particular reporting period taking into account that the person failed to report, or misstated, the particular amount.