Tag Archives: CRA tax relief

Important Factors about Taxpayer Relief Canada

In an ideal world, tax will be affordable, and will be paid on time so as there will not be a penalty or interest added to the account. This will not always be possible especially when there is a recession and everyone is finding that money is tight. When payment is not made or is made late there will be additional charges added and this will make it even harder to pay. If you have got into a situation where the bill has not been paid and you have been hit with charges, then it is possible to apply for taxpayer relief Canada.

If you do require assistance for tax debts, taxpayer relief Canada does have a well thought out and well presented system of providing it. Although they will not agree to lower the amount of tax principle you owe, it will be possible to have the amount of interest reduced and in some cases extra amounts in the form of penalties can be reduced.

When dealing with taxpayer relief Canada application,  our well experienced tax consultants will review the request first and decide if the relief can be provided. The Minister of National Revenue is the entity who is responsible for making the decision and they have the authority to either grant total removal of the penalties and interest that has been added or at least a proportion of it.

There is more chance of receiving the taxpayer relief Canada approval if you do not make the request yourself but make it through a third party. The best people to contact for help will be professionals who have a great deal of knowledge when it comes to Canadian tax law, and also have experience of dealing with the CRA.

The advice that you will be given is to file your tax returns anyway as at least this way there will not be a late filing fees. It is not possible to be considered for taxpayer relief Canada if not all of the relevant papers have been disclosed.

There are many reasons why relief may be given and a wide range of issues are covered. Firstly it can be a natural disaster that is responsible for the return not being made on time. When considering taxpayer relief Canada law allows for the destruction of records, secondly if it is the fault of the CRA and this will cover things such as delays in informing the resident what their obligation was or not answering queries in a timely manner. Thirdly, financial hardship will be taken into account but this will have to be proved. It will be when it is not possible to pay to keep a roof over your head and feed the family.

There is a final category that means you may receive taxpayer relief Canada, and that will include everything not covered by the others, as long as it is an extraordinary reason. The tax specialists you work with will be able to tell you what they are, and that is why working with a tax professional is so important.

The Best Way To Apply for CRA Tax Relief

However difficult it may be for you, it is important that tax debt is paid before anything else. If you miss payments there are a lot of penalties that could be imposed, but one major problem is that fact that interest can be added, and this will make it even harder to pay it off. It is possible to get CRA tax relief but there is no guarantee that everyone who applies will be successful.

 

You can apply for CRA tax relief if you are a business or an individual, and if accepted you will be able to wipe out some of the interest and charges that have been added to the account. It will not reduce the amount of tax you legitimately owe, so you need to be prepared to pay the initial bill you will have received. CRA tax relief will make things easier for you, but it will not wipe out your tax debt completely. These charges could have built up over a number of years, and at times could double the debt you have.

 

It is not just a case of asking for CRA tax relief, you must be able to prove that you are a special case and need to have the charges removed. The factors that will go in your favor will be financial hardship and a variety of medical conditions that includes an addiction or mental health issues. Natural disaster will be taken into account as will death. It is also likely that you will receive CRA tax relief if the bill has increased so much as a result of mistakes made by the CRA.

 

Even if you fit into one of the categories indicated above, the process is not easy and there will be a long road ahead of you. To make the journey easier, you could take professional advice and allow an organization to make the request for CRA tax relief for you. For you, this may be the first time that you are going through the process and you are not aware of the nuances of the law. For them it is a regular occurrence and they will know what is important and what is not when requesting CRA tax relief.

 

The difference between success and failure could be the way that the application is worded and presented. The CRA will not want to lose money and while they will work within the law, if possible they will not grant CRA tax relief unless they have to. If the case put before them is flawless and makes it clear that you are a deserving case, you will find it easier to have the penalties lifted.

 

As applying for CRA tax relief is a detailed process, a professional will always be able to get you better results than you would get by applying yourself.  Free consultations are available for you to know if you have a chance of having your debt reduced without having to pay out any more money. Your consultant will let you know if you are likely to be successful before you proceed.