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The penalty is 10% of the unpaid tax when the return was due, plus 2% of this unpaid tax for each complete month that the return is late, up to a maximum of 20 months.
References Subsections 162(1) and 162(2) of the Income Tax Act If a corporation fails to file these returns, in addition to any other penalty as applicable, a penalty will be charged for each complete month that the returns are late, up to a maximum of 40 months.
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