Remission Orders

A remission order is an order made by the Federal government under the Financial Administration Act. The order reduces or cancels any tax (including any interest) or penalty that a taxpayer owes when either:

  • ┬áthe collection of tax or the enforcement of a penalty is unreasonable or unjust, or
  • when it is in the public interest to reduce or cancel the tax or penalty.

Further, unlike a taxpayer relief request, there is no limitation period on the taxation years in which relief is available.

Applications must be recommended by the Canada Revenue Agency (CRA) in order for the Federal government to grant the remission order.

In order for CRA to recommend an application for a remission order, the taxpayer must seek all alternative options available to reduce the tax or penalty. Therefore, the taxpayer must have exhausted all available avenues prior to any application for a remission order, including:

  • a notice of objection,
  • a notice of appeal, or
  • a taxpayer relief request

CRA then screens the application to determine whether the application fits within its criteria for relief. CRA has four categories in which it will consider recommending a remission order:

  • extreme hardship,
  • incorrect departmental action or advice,
  • financial setback coupled with extenuating factors, or
  • unintended results of the legislation.

TaxChambers LLP is collaborating with Andersen Global® in Canada.