Forgot to include a tax slip? Thinking that CRA will pick it up and reassess? No big deal right? Think again. You will be shocked to know that a retired tax payer was recently imposed a $3600 penalty  by Canada Revenue Agency (CRA) for failing to include an investment income Tslip.   This penalty was on top of the interest and tax owed on the income.

 If two T-slips in a four-year period  are  not reported you may face this 20% penalty.  It is 20% of the T-Slip income not reported not of the tax owed.  This penalty is very steep and means that you need to make sure that you include all T-slips even if the amount is very small.  If you realize you have forgotten a T-Slips from 2011 or from a prior year, bring it in to us so we can prepare a T1-adjustment.

Please note that it is ultimately the tax payer’s responsibility, not the tax preparer.  As you know, we make every effort to cross reference with the previous years and with your investment accounts to ensure that all your T-slips are indeed reported.  But again, you are ultimately responsible for giving us all documents needed to prepare your declaration.