Let’s say you file your return and later discover that you’ve failed to include a T-slip reporting income or a dividend payment. No problem, you think, because you know the slip’s issuer also sends the same information to the Canada Revenue Agency. You think it’s not necessary to give in the late slip to the Tax department, assuming that the CRA is aware of it.
If you don’t report income for the year you are filing your taxes for, and also failed to report income just once in any of the three previous years, you can be fined with what’s called a “repeated failure to report income penalty.”
The penalty, which is automatically generated by the CRA’s computers, is 20 percent of the amount you fail to report in that year you are filing the taxes for.