oseph did not file his personal tax returns for three years. The CRA sent him a letter demanding that he file his late returns. Joseph is not self-employed. On September 15, Year 4, he filed the following three tax returns:

Year 1 — Refund claimed
Year 2 — Balance paid of $500
Year 3 — Balance paid of $1,200
What is the amount of the penalty that will be assessed on his Year 3 tax return?

Answer is 216. I am not sure how I will solve this problem.