The CRA has amended IC01-1R2 (“Third-Party Penalties”) in light of Guindon v R, 2015 SCC 41, and Ploughman v R, 2017 TCC 64. It has confirmed that “culpable conduct” “is defined with reference to the types of conduct the courts have considered when applying the gross negligence penalties under subsection 163(2) of the ITA” and there is no lower “indifference” standard.
On the other hand,
[t]he good faith reliance exception is available when the information is provided to the advisor by or on behalf of the other person and is not clearly false, obviously unreasonable to a prudent person, or does not raise questions in the mind of the advisor.
Josh Davis “CRA Issues Updated Information Circular IC01-1R2 Third-Party Penalties” Canadian Tax Focus 16:2 (May 2026)
