Introduction – Form T1135 is a “Penalty Jackpot” for the Canada Revenue AgencyPenaltiesThis provides information (including a table of penalties and frequently asked questions) about penalties for late or improperly filed forms and information returns.Failing To FileThe penalty for failing to file a return is $25 per day for up to 100 days (minimum $100 and maximum $2,500). This penalty does apply to Form T1142.When failing to file is done knowingly or under circumstances amounting to gross negligence, the penalty is $500 per month for up to 24 months (maximum $12,000), less any penalties already levied. This penalty does not apply to Form T1142.After 24 months, the penalty is 5% of whichever of the following resulted in the requirement to file the information return, less any penalties mentioned above already levied: