I forgot to file T1135 — is it really $25 per day late?
⚠️ Disclaimer: For general information only — not tax, financial, or legal advice. Figures may be outdated or incorrect; tax rules change frequently. Verify important decisions with the CRA/IRS or a qualified professional. You use this information at your own risk.
The short answer
Yes. A late T1135 costs $25 per day, up to $2,500 (minimum $100), plus interest. If the failure was knowing or amounted to gross negligence, the penalty jumps to $500 per month (up to $12,000), and after 24 months a further penalty of 5% of the property's cost can apply. File it late now — every day you wait costs another $25.
The penalty ladder
| Situation | Penalty |
|---|---|
| Late filing (ordinary) | $25/day, max $2,500 (min $100), plus interest |
| Knowing failure / gross negligence | $500/month, max $12,000 (24 months) |
| Still not filed after 24 months (knowing) | Additional 5% of the property's cost |
| CRA demands the form and you ignore it | Up to $1,000/month, max $24,000 |
How to fix it
- File the missing T1135 immediately. The daily clock stops the day CRA receives it.
- Consider the Voluntary Disclosures Program (VDP). If CRA hasn't contacted you about it yet, VDP can grant penalty relief (you still pay the tax and interest).
- Document reasonable cause. Courts recognize a due-diligence defence — but only if you can show you acted as a prudent person would. Repeating the same omission after being warned kills this defence (see Laurie v. The King, 2025).
Frequently asked questions
I filed 3 months late by accident — will CRA really charge me $2,250?
Often the first step is a letter, not an assessment. But legally the $25/day starts accruing from the due date, so file now and don't assume leniency.
Can my accountant's mistake excuse me?
Not automatically. You are responsible for your return even if a preparer made the error — though it can support a due-diligence argument.
Does VDP guarantee no penalty?
No — VDP is discretionary, and it only helps if CRA hasn't already started asking about the omission. Interest is never waived.
Sources
- https://silaws.com/2026/06/22/newcomer-tax-2026/
- https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/foreign-reporting-requirements.html (CRA)
- Income Tax Act, ss. 162(7), 162(10)
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Disclaimer — please read. This article is for general information and educational purposes only. It is not tax, accounting, legal, financial, or immigration advice, and reading it does not create a professional or client relationship between you and Llandora. Tax and immigration rules change frequently and differ by country, province/state, and personal circumstances; figures, thresholds, and examples in this article may be outdated, incomplete, or incorrect, and may not apply to your situation. Always verify current rules with the official sources (CRA, IRS, IRCC, USCIS) and consult a licensed professional before making any decision. Llandora makes no warranty of any kind — express or implied — about the accuracy, completeness, reliability, or timeliness of this content. To the fullest extent permitted by law, Llandora disclaims all liability for any loss, damage, cost, or expense arising from errors or omissions in this article or from any action taken or not taken in reliance on it, whether direct, indirect, incidental, or consequential. You rely on this article entirely at your own risk.