1079.13.1. If, as a consequence of the application of section 1079.10 in respect of a transaction, the tax consequences to a person are determined as is reasonable in the circumstances in order to deny a tax benefit, the person incurs a penalty equal to 50% of the amount of the tax benefit denied.
However, the first paragraph does not apply if the person filed an information return in respect of the transaction, or series of transactions that includes the transaction, in accordance with any of sections 1079.8.5 to 1079.8.6.2, 1079.8.7 and 1079.8.7.1.
For the purposes of the first paragraph, a tax benefit that results from the application of paragraph c of the definition of “tax benefit” in the first paragraph of section 1079.9 is deemed to be nil.
2010, c. 25, s. 193; 2019, c. 142019, c. 14, s. 4301; 2020, c. 22020, c. 2, s. 471; 2020, c. 162020, c. 16, s. 17711; 2024, c. 112024, c. 11, s. 13111.