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.