CRA generally will only make a single penalty assessment for a trust filing failure for a year described in s. 163(5)

Regarding whether more than one person may be assessed a penalty under s. 163 regarding a failure to file (or respond to a demand to file) a T3 return for a taxation year or regarding the making of a related false statement or omission, CRA generally concluded:

While more than one person or partnership may, in principle, meet the statutory conditions for liability to the Penalty under subs. 163(5), our view remains that a single assessment to the trust would reasonably be sufficient and appropriate to carry out the legislative scheme of the Act and enforce compliance, barring egregious or independent fault by others.

However, it noted that if more than one person or partnership was responsible for making relevant false statements, “there would be the potential for more than one person or partnership to be liable for the penalty under s. 163(5)(a)(i).”

It further indicated that since ss. 163(5) and (6) “are arguably more specific” than ss. 162(1), (2), and (7), and 163(2), the s. 163(5) penalty “should take precedence over penalties in those less specific provisions.”

Neal Armstrong. Summary of 7 January 2026 Internal T.I. 2024-1007421I7 under s. 163(5).