59.2.2. Every person who fails to report an income equal to or greater than $500 (in this section referred to as “unreported income” ) in the fiscal return filed by that person for a taxation year and has already made such an omission for any of the three preceding taxation years incurs a penalty equal to the lesser of
(a) 10% of the unreported income; and
(b) the amount determined by the formula
0.5 × (A – B).
In the formula in the first paragraph, (a) A is an amount equal to the excess amount that would be determined for the taxation year under the first paragraph of section 1049 of the Taxation Act (chapter I‐3) if that section applied in respect of the unreported income; and
(b) B is any amount deducted or withheld under section 1015 of the Taxation Act that may reasonably be considered to be in respect of the unreported income.
Notwithstanding the foregoing, no person shall incur, in respect of the same omission, both the penalty under the first paragraph and the penalty under section 1049 of the Taxation Act.
1997, c. 14, s. 308; 2019, c. 14, s. 2112019, c. 14, s. 212.