Taxpayer Relief Provisions
Amber Arnold

Taxpayer Relief Provisions

Have you incurred penalties and interest for reasons beyond your control? If so, you may be eligible to have those penalties and interest waived by the Minister of National Revenue.

The Minister may grant relief from penalties or interest when the following types of situations prevent a taxpayer from meeting their tax obligations:

Extraordinary circumstances:

    • natural or human-made disasters, such as a flood or fire;
    • civil disturbances or disruptions in services, such as a postal strike;
    • serious illness or accident; and
    • serious emotional or mental distress, such as death in the immediate family.

Actions of the CRA:

    • processing delays that result in taxpayers not being informed, within a reasonable time, that an amount was owing;
    • errors in CRA material which led a taxpayer to file a return or make a payment based on incorrect information;
    • incorrect information provided to a taxpayer by the CRA;
    • errors in processing; 
    • delays in providing information, resulting in taxpayers not being able to meet their tax obligations in a timely manner; and
    • undue delays in resolving an objection or an appeal, or in completing an audit

Inability to pay or financial hardship:

    • a collection has been suspended because of an inability to pay caused by the loss of employment and the taxpayer is experiencing financial hardship;
    • a taxpayer is unable to conclude a payment arrangement because the interest charges represent a significant portion of the payments; or
    • payment of the accumulated interest would cause a prolonged inability to provide basic necessities (financial hardship) such as food, medical help, transportation, or shelter; consideration may be given to cancelling all or part of the total accumulated interest.

Other circumstances:

    • The CRA may also grant relief if a taxpayer's circumstances do not fall within the situations described above

If you feel any of these situations apply to you, come speak with us today and enjoy a coffee as we discuss how we can use the Taxpayer Relief Provisions to help you reduce the amount that you owe to the CRA.