5. Under S162(1) and S162(2), the CRA has the right to impose interest and penalties for amounts owing.

Which of the following statements is incorrect with respect to the imposition of interest and penalties?

1. Under S162(1), a penalty of 5% of unpaid taxes plus 1% per month for 12 months can be levied
2. Under S162(1) only penalties can be levied
3. Under S162(2), a penalty of 10% of unpaid balance plus 2% per month for 20 months can be levied
4. Under S163 a penalty of 50% of unpaid balance cn be imposed for gross negligence.