If a T1 or T2 return is filed late, certain charges apply. Which of the following statements is INCORRECT? O a. a. Penalties and interest are based on the balance of tax payable at the taxation year-end. O b. For the first offence, penalties are charged at a rate equal to 5%, plus 1% for each complete month that the tax due is outstanding. O c. For the second offence, penalties are charged at a rate equal to 10%, plus 2% for each complete month that the tax due is outstanding. O d. Interest is calculated at a prescribed interest rate, set by Canada Revenue Agency. O e. Late-filing penalties are charged but there are no interest charges.

If a T1 or T2 return is filed late, certain charges apply. Which of the following statements is INCORRECT? O a. a. Penalties and interest are based on the balance of tax payable at the taxation year-end. O b. For the first offence, penalties are charged at a rate equal to 5%, plus 1% for each complete month that the tax due is outstanding. O c. For the second offence, penalties are charged at a rate equal to 10%, plus 2% for each complete month that the tax due is outstanding. O d. Interest is calculated at a prescribed interest rate, set by Canada Revenue Agency. O e. Late-filing penalties are charged but there are no interest charges.

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 2BCRQ

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