Conditions for CRA Taxpayer Relief Canada Program

You will come across a great deal of information around CRA Taxpayer Relief Canada program which was known in earlier days as the Fairness Program. Along with this vast array of information, there is plenty of misinformation concerning the program. It is, therefore, advisable to hire the services of professional tax consultants who are fluent with the CRA taxpayer relief Canada program. It was initiated to allow the Minister of national Revenue to provide grant relief from interest and penalties in cases where the taxpayers are unable to pay the tax dues on account of financial hardship and in cases of extraordinary circumstances or specific questionable actions on part of the CRA.

The CRA taxpayer relief Canada program differentiates between waiving and cancellation of interest and penalties. CRA believes that applying pressure on a taxpayer who is already reeling under the burden of financial hardship may end up as a futile exercise. Cancellation would be concerned with interest or penalty that is assessed for which a relief could be granted, in part or for the whole amount, by the CRA. Waiver will be concerned with penalty and interest amounts that have not been assessed yet or charged and for which, relief could be granted, in part or whole, by the CRA.

When understanding CRA taxpayer relief Canada conditions, particularly those that apply under extraordinary circumstances, it can be stated that these circumstances are those that are beyond the control of taxpayers. These circumstances prevent taxpayers from making the tax payments and filing their tax returns on time. These circumstances would include serious ailment or an accident that causes disability and disruption of work and earnings. They would also include natural disasters or events like a fire or a flood. Extraordinary circumstances can arise when there are disruptions in services due to civil disturbances. Extreme mental distress or emotional trauma can also be categorised as extraordinary circumstances and an example could be the condition of a taxpayer immediately after the death of someone in the immediate family.

CRA taxpayer relief Canada could be granted in cases which are affected by wrong actions on part of the CRA. Penalties can be waived or cancelled by the CRA in specific cases such as delays in processing which result in taxpayers not getting the information within a reasonable period of time, like the statement of outstanding taxes. These actions may also include errors on part of the CRA that lead the taxpayers to file a tax return based on incorrect data. There could also be errors in processing and delay in providing necessary information preventing the taxpayers from being able to meet the tax payment obligations on time. Wrong actions on part of the CRA can also include delays in the resolution of an appeal or a Notice of Objection and while completing a tax audit.

The CRA may offer penalties or interests reduction through CRA taxpayer relief Canada if there is a confirmed case of inability on the part of taxpayers to pay the tax amounts which are due. In such cases, CRA will consider cancelling or waiving interest either in part or in whole. The inability to pay or a financial hardship situation could be one where there is loss of employment. CRA would also consider cases where the continuous payment of accumulated interest may prevent taxpayers from taking care of basic necessities like food, education and medical help and shelter. In these cases, CRA would even go as far as cancelling complete or part of the total interest that has been accumulated for the affected taxpayers.