Tax · Foreign reporting
T1135 late-filing penalty.
File the T1135 late and the CRA charges $25 a day, between $100 and $2,500. If the failure was knowing or grossly negligent, it can reach $12,000.
The standard penalty under Income Tax Act 162(7) is $25 for each day late, for up to 100 days, with a $100 minimum and a $2,500 maximum. Under 162(10), a knowing or grossly negligent failure adds $500 per month for up to 24 months (maximum $12,000), reduced by the 162(7) penalty for the same failure.
Inputs
Estimated penalty
Fill the form and press Calculate.
Worked example
A return is filed 60 days late. 60 × $25 = $1,500, which is inside the $100 to $2,500 range. At 100 days or more the penalty stops at $2,500. For a very short delay of 1 to 4 days, the $100 minimum applies.
If the CRA treats the failure as knowing or grossly negligent and the return is 6 months late, 162(10) gives $500 × 6 = $3,000, minus the $2,500 already charged under 162(7) for a 100-day delay, so $500 more and $3,000 in total.
Formula and sources
162(7): greater of $100 and $25 × days late (days capped at 100). 162(10): ($500 × A × B) − C, where A is months (max 24), B is 1 or 2 depending on the case, and C is the 162(7) penalties for the same failure. This tool models B = 1 only (the CRA's $500/month case).
Read 1 October 2026: the CRA table of penalties, the Income Tax Act section 162, and the CRA T1135 page.
Not modelled
Not included: the $1,000/month case where a CRA demand is ignored, the extra 5% penalty under 162(10.1) after 24 months, interest, and any relief the CRA grants.
Frequently asked questions
Who has to file a T1135?
Canadian residents who owned specified foreign property costing more than CAD $100,000 at any time in the year. See the CRA T1135 page for the full rules.
What if I never filed past years?
The Voluntary Disclosures Program (VDP) may reduce or remove penalties if you come forward before the CRA contacts you and meet its conditions. Ask a tax professional whether you qualify, since eligibility rules change.
Is the penalty per year?
Each late return is a separate failure, so each tax year's T1135 can carry its own penalty.
Can the penalty be cancelled?
The CRA can waive penalties in some circumstances, such as extraordinary events outside your control. This tool does not predict that.
Estimate only — not tax advice
This tool applies the published CRA and Income Tax Act penalty amounts to the numbers you enter. It is not tax or legal advice and does not decide whether the gross-negligence penalty applies. Confirm with the CRA or a tax professional before acting, and ask about the Voluntary Disclosures Program if you have unfiled years.