21 November 1990 External T.I. 900725 F - Penalty for Failure to Report

By services, 18 January, 2022
Official title
Penalty for Failure to Report
Language
French
CRA tags
163(1)
Document number
Citation name
900725
Severed letter type
Technical Interpretation - External
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
632340
Extra import data
{
"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1990-11-21 07:00:00",
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Main text
  90072-5
  November 21, 1990
  J.D. Jones
  Personal & General

Issue

1.     Whether a penalty under subsection 163(1) of the Act is applied to the gross unreported income of a taxpayer or the net unreported income (after deductions under Division B).

Decision

Penalties under subsection 163(1) of the Act are applied on the gross unreported income of a taxpayer (i.e.before applying any deductions under Division B).

Rationale

This position is consistent with the intent of the Department of Finance which was confirmed in a memorandum from Current Amendments Division dated November 6, 1989   23