12 Penalties In Relation To First Time Home Buyers’ Program And Purpose-built Rental Program

• 12 (1) If the administrator determines that a transferee who applies for an exemption under section 5 or 6 or a refund under section 7 or makes an application under section 12.12

• (a) is not qualified under section 5 to receive an exemption from tax under section 2(1)(a) or to obtain a refund under section 7, and
• (b) provided a declaration under section 5(2) or an application under section 7 or 12.12 that is false or misleading in respect of the matters referred to in paragraph (c) or (d) of the definition of “first time home buyer” in section 4(1),

• the transferee must pay to the administrator, in addition to the amount of tax that the transferee is obliged to pay the administrator under section 2(1)(a), 9 or 12.12(8), as applicable, a penalty in an amount equal to the amount of the exemption, refund or credit claimed in the application.
• (2) If the administrator determines that a transferee who applies for an exemption under section 10.2 or a refund under section 10.3

• (a) is not entitled under section 10.2 to receive an exemption from the obligation to pay tax in accordance with section 3(1)(d) or to obtain a refund under section 10.3, and
• (b) provided a declaration under section 10.2(3) or an application under section 10.3 that is false or misleading,

• the transferee must pay to the administrator, in addition to the amount of tax that the transferee is obliged to pay the administrator in accordance with section 3(1)(d), a penalty in an amount equal to that amount of tax.
• (3) If the administrator determines that a transferee who has obtained an exemption under section 10.2 or a refund under section 10.3

• (a) is, because of the occurrence of an event described in section 10.5(3) or (5)(a) to (e), liable to tax under section 10.5, and
• (b) provided a notice under section 10.4(2) that is false or misleading with respect to the date the event occurred,

• the transferee must pay to the administrator, in addition to the amount of tax that the transferee is obliged to pay the administrator under section 10.5, a penalty in an amount equal to that amount of tax.
• (4) If the administrator determines that a transferee who has obtained an exemption under section 10.2 or a refund under section 10.3

• (a) is, because of the occurrence of an event described in section 10.5(5)(a) to (e), liable to tax under section 10.5, and
• (b) failed to provide a notice under section 10.4(2),

• the transferee must pay to the administrator, in addition to the amount of tax that the transferee is obliged to pay the administrator under section 10.5, a penalty in an amount equal to that amount of tax.
• (5) If the administrator determines that a transferee who has obtained an exemption under section 10.2 or a refund under section 10.3

• (a) is, because of the occurrence of an event described in section 10.5(5)(a) to (e), liable to tax under section 10.5, and
• (b) provided a notice under section 10.4(2) after the expiry of the period set out in section 10.4(3),

• the transferee must pay to the administrator, in addition to the amount of tax that the transferee is obliged to pay the administrator under section 10.5, a penalty in an amount equal to 0.2% of that amount of tax for each week between the time the notice was required by section 10.4(3) to be provided and the time the notice is received by the administrator, to a maximum amount equal to that amount of tax.
• (6) If the administrator determines that a transferee who has obtained an exemption under section 10.2 or a refund under section 10.3 provided a declaration under section 10.4(4) that is false or misleading with respect to a matter referred to in paragraph (a) or (b) of that provision, the transferee must pay to the administrator, in addition to the amount of tax that the transferee is obliged to pay the administrator under section 10.5, a penalty in an amount equal to that amount of tax.
• (7) The administrator may refuse to accept from a transferee a notice under section 10.4(2) if the notice is provided after

• (a) the period of time set out in section 10.4(3) has expired, and
• (b) the administrator has issued a notice of assessment imposing on the transferee a penalty under subsection (4) of this section.

• (8) The administrator may at any time waive or cancel all or part of the penalty payable by a person under subsections (2) to (6).

2016-3-53; 2023-23-150; 2024-13-186.