“The Acceptance of a Due Diligence Defence for a Penalty Imposed Under Subsection 280(1) of the Excise Tax Act for Failure to Remit or Pay an Amount When Required, and for a Penalty Imposed Under Section
The Canada Revenue Agency (“CRA”) has revised this policy statement to include the CRA’s position on accepting a due diligence defense in respect of the penalty imposed under section 280.1 of the Excise Tax Act, which came into effect April 1, 2007. Where a person fails to file a return when required, the person is liable to a penalty imposed on the amount not remitted, or paid on that return. In addition, the policy statement now includes two examples to illustrate the application of the due diligence defense to the late filing of returns.
CRA Policy P-237