| Infraction |
First Infraction |
Repeat Infraction (Repeated infractions will increase the probability of revocation) |
| Late filing of annual information return (T3010A) |
$500 penalty |
$500 penalty |
| Issuing receipts with incomplete information |
5% penalty on the eligible amount stated on the receipt |
10% penalty on the eligible amount stated on the receipt |
| Failure to keep proper books and records |
Suspension of tax-receipting privileges |
Suspension of tax-receipting privileges |
| Charitable organization or public foundation carrying on an unrelated business |
5% penalty on gross unrelated business revenue earned in a taxation year |
100% penalty on gross unrelated business revenue earned in a taxation year and suspension of tax-receipting privileges |
| Private foundation carrying on any business |
5% penalty on gross business revenue earned in a taxation year |
100% penalty on gross business revenue earned in a taxation year and suspension of tax-receipting privileges |
| Foundation acquires control of a corporation |
5% penalty on dividends paid to the charity by the corporation |
100% penalty on dividends paid to the charity by the corporation |
| Undue benefit provided by a charity to any person (e.g., a charity makes a cash gift to the director's son) |
105% penalty on the amount of undue benefit |
110% penalty on the amount of undue benefit and suspension of tax-receipting privileges |
| Generally making a gift to an entity other than a qualified donee as defined in the Act |
105% penalty on the amount of the gift |
110% penalty on the amount of the gift |
| Issuing receipts if there is no gift or if the receipt contains false information (where the penalties in total do not exceed $25,000) |
125% penalty on the eligible amount stated on the receipt |
125% penalty on the eligible amount stated on the receipt |
| Issuing receipts if there is no gift or if the receipt contains false information (where the penalties in total exceed $25,000) |
Suspension of tax-receipting privileges and 125% penalty on the eligible amount stated on the receipt |
Suspension of tax-receipting privileges and 125% penalty on the eligible amount stated on the receipt |
| Gifting property to another registered charity so as to delay expenditures on charitable activities |
The charities involved are liable to a 110% penalty of the FMV of the property |
The charities involved are liable to a 110% penalty of the FMV of the property |
