Failure To Report Income
If you knowingly did not report your full income on your tax return which amounts to
gross negligence, then the penalty will be the greater of $100.00 and 50% of the underreported tax. When the Canada Revenue Agency reassesses the return and adds on a penalty of 50% plus interest the resulting taxes due are extremely expensive. If you, however, file a voluntary disclosure before CRA contacts you then the penalties can be waived.