Penalty for never reporting a business-use account: the higher of two bases
Recorded as a comparison rather than a single figure because that is what the statute does, and stating it as 'annual revenue × 0.2%' understates it for a business whose qualifying transactions exceed its reported revenue for the unreported period. The rate is the same 0.2% as the non-use penalty; what differs is that this one takes the larger of two bases rather than one.
- Applies to
- Double-entry bookkeeping obligors who never reported a business-use account at all
- Review cadence
- Checked once a year
What we have recorded
- 2026-10-070.2% — the higher of two bases
The higher of (a) revenue attributable to the unreported period × 0.2% and (b) the transactions that were required to go through a business-use account × 0.2%. It applies even where there is no calculated income tax, so a loss-making year is not a shelter from it.
Income Tax Act, art. 81-8 (penalty on business-use accounts)
One reading so far. This becomes a history the first time the figure moves while we are watching — which is the part that cannot be reconstructed later.