Section 163.1 — Income Tax Act: Penalty for late or deficient instalments

Every person who fails to pay all or any part of an instalment of tax for a taxation year on or before the day on or before which the instalment is required by this Part to be paid is liable to a penalty equal to 50% of the amount, if any, by which the interest payable by the person under section 161 in respect of all instalments for the year exceeds the greater of $1,000, and 25% of the interest that would have been payable by the person under section 161 in respect of all instalments for the year if no instalment had been made for that year.