Tag Archives: Taxpayer relief

What is a Canadian Taxpayer Relief

Canadian Taxpayer relief refers to reaching a negotiating with the CRA where the debt issue is resolved through waiving or cancelling off the interest or penalty amount from the actual payable taxes of a debtor. Canadian taxpayer relief program was designed to offer relief to taxpayers who were unable to pay their tax debt s owing to

– Any extraordinary circumstances

– An action of the CRA (Canada Revenue Agency)

– Financial hardships resulting in inability to pay off debts

– Other similar circumstances

Canadian tax relief for a debtor is specified differently under cancelling of the debt and wavering of the tax debt. By cancelling of a tax debt it is meant that the already levied penalty or interest on a taxpayer is cancelled either in whole or partially, however wavering of taxpayer debt allows amnesty or relief from a future interest or penalty that will be levied.

As listed above one way of Canadian taxpayer relief is wavering or cancelling of interest and penalty owing to extraordinary circumstances. These extraordinary circumstances include

– occurrence of an accident or any illness

– facing disasters that are either natural or manmade such as floods, fires, etc

– any civil disturbance incidence that cause disruptions in any one or many services such as strikes in postal service         and

– Severe mental or emotional distress such as death of a close or immediate member of the family.

 

Further on actions of the CRA that allow Canadian taxpayer relief include

– Any error present in the CRA material that resulted in a taxpayer filing a return of any payment that was based on any incorrect information

– Any processing delays that resulted in not informing of the taxpayer and the assigned time of paying owed amount was over.

– Processing error

– Any incorrect information to a taxpayer usually in writing by CRA

– Any undue delay in audit completion or resolving of an appeal or objection

– Any information delays that hinder taxpayer from paying his dues on time.

 

These are the conditions besides proved inability to pay taxes and other circumstances that make a taxpayer eligible for Canadian tax relief.

There is a common misconception that taxpayer relief can be obtained only once and so giving it the best shot once is always a good idea. This is not true as tax relief can be applied for by individuals as many times as they are warranted for it. That is when any of the above mentioned conditions are present Canadian taxpayer relief can be applied for.

Also applying for a Canadian taxpayer relief through not filing the tax returns initially and then later on proving bankruptcy or inability to pay will not render a taxpayer eligible for the Canadian tax relief. Not filing taxes is an offense and can be prosecuted. It is essential to file all outstanding returns before filing for the Canadian taxpayer relief program as it will not be considered until everything is up to current.

Also any birth disability with an individual will not make him eligible for a Canadian taxpayer relief program as if he or she has managed to pull it this far they can do it in future as well. Since filing for taxpayer relief is a very complex process, hiring the service of a tax expert company such as Tax SOS will help you in following the right direction and ultimately success in getting the Canadian tax relief if you qualify for it.

 

Summary

Canadian taxpayer relief program was designed to relieve tax debtors from paying interest and penalties that are levied on them that were either due to an error of the CRA, inability to pay off, an extraordinary occurrence or some other circumstances. CRA allows tax relief to any individual as many times as he proved to be worthy of it.

Eligibility Criteria for the Taxpayer Relief

If you want to consider sending out an application under the Taxpayer Relief Program in Canada, you have to first think in terms of hiring some professional consultants who can help you go through with it. This should be done even when you find a lot of information on the web around CRA’s Taxpayer Relief Program which was previously referred to as the Fairness Program.

Not everyone who reads the information on taxpayer relief scheme can understand it thoroughly. The information could turn very easily into misinformation around this program. It is the experienced tax accounting firms who can interpret all the details concerning the taxpayer relief program.

The important objectives of the taxpayer relief program are worth going through after investing time and effort into their application. It is better, still, to employ the service experts who know the program, in and out.

The Taxpayer Relief Program in Canada was created to enable the Minister of National Revenue to offer relief schemes from penalty and interest charges when certain circumstances held a taxpayer back from meeting the tax obligations. The taxpayers could be individuals or business corporations. The term `taxpayer’ also includes employers or payors, partnerships, organisations, trusts, estates, Goods & Services Tax (GST) and Harmonized Sales Tax (HST) claimants or registrants.

These exceptional situations could be broadly categorised as:

  1. Inability to pay the taxes on account of financial hardship.
  2. Certain actions taken by the CRA; those were of an erroneous nature.
  3. Extra ordinary circumstances such as acts of nature of Force Majeure.
  4. Other Circumstances.

 

The taxpayer relief program makes a distinction between the cancellation and the waiver of the penalties and interest charges. The justification behind this was provided by the CRA as it understood that the granting of relief to a taxpayer was redundant if the same taxpayer was burdened by interest and penalties, making the whole relief scheme a futile exercise. The term `cancellation’ refers to penalties and interest amounts after they are assessed or charged, towards which the relief is provided in whole or in part by the CRA.

The extraordinary circumstances cover penalties and interest charges that are either cancelled or waived in part or in whole when they are affected by circumstances beyond the control of the taxpayers. These extraordinary circumstances may prevent taxpayers from paying their taxes when they fall due, preventing them from filing their tax returns in time or complying with the tax obligations. These circumstances include natural or man-made disasters like a fire or a flood. They may include civil disturbances with services being disrupted. There may be circumstances like a serious ailment or an accident that causes partial or permanent disability. The circumstances also include severe emotional and mental distress that may arise out of certain events that occur in a family such as a death in the immediate family.

A response from the CRA concerning the Taxpayer Relief Program may take anywhere from three months to a couple of years depending on the number of request applications that fall due. It is, therefore, advisable, to engage the services of tax professionals as they will be in the best position to assess whether your request is adequate or not. This makes it worthwhile before you file the application for the review and consideration of the CRA.

Facing CRA Tax Problems?

Facing tax problem put a great deal of stress on an individual. One of the biggest mistakes that people make is trying to undergo a CRA tax problem alone. This can prove to be detrimental to one’s financial and emotional well being. Therefore, anyone who is about to experience a CRA tax problem in Toronto and other regions should seek out the necessary help from qualified individuals in order to better understand their tax problems and the options that they have available to them. Having tax problems and dealing with the tax agency can be a scary experience for many individuals. Having the assistance that is provided from Tax 911 Now is invaluable for anyone who is about to experience a CRA’s challenge in Toronto and surrounding areas. 

 

Having Tax Problems?

Virtually everyone has tax problems at one time or another. The problems may be through no real fault of the individual in question or they may be because the individual did not take the time to fully understand what their duties and obligations were concerning their taxes. Working with a tax consultant based in Toronto can help them to better understand what their duties and obligations are. Tax consultant also helps people to better understand what their options are if they are facing a CRA tax problem in Toronto. Getting help from a qualified representative at Tax 911 Now helps people to better understand what they are truly facing and how they can work through it successfully. Services are provided in Toronto, York and Durham Regions plus surrounding areas.

Need Tax Relief for Large Tax Debts Owing?

Tax relief is essential for any individual with large tax debts to protect their financial health. More importantly, taxpayer relief Toronto is something that can be provided by qualified individuals who understand the tax laws and how they apply to each individual’s circumstances. Many people choose to speak with a tax consultant Toronto because they are unsure of how to proceed with their taxes given their circumstances or they are looking for some type of tax relief because they are unable to pay at the current rate.

Revenue Canada Tax Audits

The main thing that you you should know about a CRA audit is that it does not have to be a frightening experience as long as you work closely with qualified tax consultants to help you better understand your situation. It is important that you contact a representative from Tax 911 Now as quickly as possible in order to ensure that you have the greatest amount of time to fully understand your tax situation and possible outcomes. To find out more information you can call 1-877-918-2991. For a more personal meeting you can come for a visit. The office is located at 129 Telson Road, Suite #100, Markham, Ontario, L3R 1E4.

Tax Payer Relief by CRA’s Taxpayer Relief Program

CRA has been training all their agents, such as auditors or collection agents, to use the buzz word “Tax payer relief” when communicating with tax payers as if that is an easy and simple request to make to get a big reduction of the tax debts

The matter of the fact is that every tax payer wants to have their tax debts reduced. To not open a gate of flood, CRA’s criteria for tax payer relief are quite strict to say the least.

CRA normally grants tax payer relief from penalties and interest due to extraordinary circumstances, actions of the CRA and inability to pay or financial hardship. Penalties and interest may be waived or cancelled in whole or in part where there are circumstances that are beyond the taxpayer’s control.

The following are typical examples of situations that may merit for tax payer relief:

Natural or man-made disasters such as, floods, fires, hurricanes, civil disturbances, Serious illness or accidents,  Serious mental or emotional distress, such as a death in the immediate family.

Mistakes of CRA: you can apply under taxpayer relief if actions of the CRA caused the penalties and interest including:

–  Processing delays within a reasonable time whereby the taxpayer was not informed of the amount owing;

–  Errors in materials by CRA which led to a mistake.

–  Incorrect information provided to the taxpayer in writing;

–  Errors in processing,

–  Delays in resolving an objection or an appeal.

Tax payer relief provision enables the taxpayer to settle their account with possible financial relief. The result of successful taxpayer relief includes:

– Waive or cancel penalties and interest,

– Extend the filing-due date for making certain elections or grant permission to amend or revoke certain elections.

– Authorize a refund to an individual even though an income tax return is filed outside the normal filing period;

– Authorize a reassessment or re-determination for an individual beyond the three-year normal reassessment period to allow a refund or a reduction in an amount payable.

You have 10 years from the end of the calendar year in which the tax year or fiscal period at issue ended to make a request to the CRA for tax payer relief.

We have gained special knowledge that CRA does not share with public about tax payer relief approving factors that we have achieved great success over. Just see yourself what the satisfied client say about their tax payer relief results in their testimonials. You can be the next.

You many think that you are not qualified, if you do not ask, you lose 100%. By asking the help from experienced professionals, you chance of getting tax payer relief is much increased.

What You Need to Do Now to Get Tax Payer Relief

Hire someone who is qualified and has the experience to help you to get your tax reduced. Many people try to handle the tax payer relief themselves, resulting in frustrating results because they do not understand the how tax payer relief system work. Keep in mind the tax payer relief is more than just a simple request. You need strong support from various aspects.

Why Choose Tax 911 Now Team for Tax Payer Relief

We have helped clients in reducing their tax debts by filing tax payer relief and negotiated excellent settlement for them. See what happy clients say about our Tax payer relief service in the testimonial.

Tax 911 Now tax payer relief services are offered across Canada in:

  • Toronto
  • Markham
  • Vancouver
  • Calgary

Our initial consultation is FREE and CONFIDENTIAL. You will get comprehensive analysis of your tax situation and recommended solutions in the first meeting. Then you can decide what to do from there.