Ken Kaye Ltd., a CCPC eligible for the small business deduction, has a January 31 year end.

Due to the untimely departure of a key employee, the tax return for the year ended January

31, 2006 was not filed until March 1, 2008. The unpaid tax on January 31, 2006 was $5,500.

In the past, all returns have been filed on time. What is the total penalty, excluding interest

that the corporation is required to pay?

(a)Nil

(b)$275

(c)$660

(d)$935