The Canada Revenue Agency (CRA) has recently revised its administrative guidance on the application of third-party penalties under section 163.2 of the Income Tax Act (Canada) (ITA), broadening the circumstances in which the CRA may apply penalties. In particular, informal or non-client specific communications are no longer treated by the CRA as being outside the scope of the third-party penalty regime. Advisors engaged in thought leadership, marketing activities, or online commentary should be cautious in light of the CRA’s new approach.
New Information Circular IC01-1R2 – Third-Party Penalties
In Information Circular IC01-1R2 (released February 2026), the CRA stated that third party “planner” penalties under subsection 163.2(2) may apply where an advisor publishes or promotes aggressive tax avoidance structures or “how to” content directed at a broad or undefined audience where such communications are based on false or misleading statements, even where no specific user or taxpayer
