If a taxpayer has been charged with interest or penalties, the Canada Revenue Agency (CRA) has the discretion to provide relief to the taxpayer. CRA can waive or cancel all or part of any interest or penalty charged to a taxpayer under the Taxpayer Relief Provisions.
CRA will only exercise this discretion if a taxpayer cannot pay their outstanding balance for the following reasons:
1. Extraordinary circumstances completely beyond the taxpayer’s control (such as a major illness) that prevent the taxpayer from being able to pay off their tax liability.
2. Actions taken by CRA (for example, undue processing delays) which are the primary cause of the application or accumulation of interest and penalties.
3. Where CRA has confirmed the inability to pay the total amount outstanding and where a waiver of interest or penalties will allow the taxpayer to pay the remaining balance.
You can find more information on CRA’s Taxpayer Relief Provisions from the CRA.
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