6- Third party penalties

The federal government can impose civil penalties on third parties who make false statements or omit information with respect to tax matters. The legislation provides for two penalties. The first penalty deals with promoters and professionals involved in the planning, promotion or sale of an arrangement that includes a false statement or omission that could be used for tax purposes. The second affects professionals who make or participate in the making of a false statement or omitting information in a tax return, form, certificate or statement.

Quebec provides a penalty for “tax return preparers” who participate or encourage taxpayers to make a false return.