TAXPAYER RELIEF

The taxpayer relief provisions give the CRA discretion to cancel or waive penalties and interest, and to accept certain late, amended or revoked elections, when a taxpayer could not comply because of circumstances beyond their control.

CIRCUMSTANCES THAT MAY QUALIFY

• Extraordinary circumstances: natural or human-made disasters, civil disturbances or postal disruptions, serious illness or accident, serious emotional or mental distress such as a death in the immediate family.

• Actions of the CRA: processing delays, errors in CRA publications or incorrect information from the CRA, errors in processing, or delays in providing information.

• Inability to pay or financial hardship: interest may be waived where collection has been suspended, or where paying would prevent the person from meeting basic needs such as food and shelter.

HOW TO APPLY

• Use Form RC4288, Request for Taxpayer Relief, or submit through My Account.

• Explain the circumstances, why they prevented compliance, and include supporting documents (medical records, insurance claims, financial statements).

• Requests must be made within ten calendar years from the end of the year in which the tax year ended (for example, 2016 relief must be requested by December 31, 2026).

• If the request is denied, a second administrative review can be requested, and then judicial review at the Federal Court.

LIMITS

• Relief applies to penalties and interest, not to the tax itself.

• Relief is generally not available where the taxpayer was negligent or careless.

• The CRA considers the taxpayer's compliance history and whether they acted quickly to remedy the problem.