I know this is a topic completely unrelated to TaxCycle, but hoping for an answer from an experienced practitioner…
I have a client that set up a non-profit organization providing after-school activities for disadvantaged youths. He was being funded through a government agency for the first year, and now that funding has ended. During the year there were 2 employees - himself and his wife. The non-profit can’t afford to pay salaries anymore, so he wants me to prepare ROEs. The last paycheques were a couple weeks ago, but he is REALLY worried because the ROEs haven’t been filed within the required 5 days.
How likely is it that the non-profit will be fined the $2,000 penalty? I have filed ROEs a few times, but never heard of anyone getting fined for late filing. Who levies this penalty? Service Canada? What criteria do they use? Is it an automatic penalty as soon as the ROE is filed late?
This is the only info I can find on any government of Canada website: