Taxpayer Relief (Fairness Application)– Reduce or eliminate interest and penalties
In some limited circumstances CRA will eliminate or reduce interest or penalties that they have charged you. A taxpayer relief application (fairness application) can be submitted when circumstances out of your control resulted in penalties and interest owing to the Canadian tax department.
This application is only available for situations such as:
- Medical/health problem or family member death
- Disaster (such as fire or an ice storm)
- Error on the part of the CRA
- Financial hardship
While the courts have confirmed that financial hardship is a ground for relief, CRA is very reluctant to grant an application on this basis, and requires extensive submissions.
Our Canadian tax law firm is very experienced in preparing taxpayer relief applications for our clients. We prepare a detailed submission detailing the grounds for relief, we specify exactly how the facts qualify under the CRA policy, and we provide backup evidence (such as medical reports) where available.