Taxpayer Relief

If you can’t pay your tax bill on time, know that you have options. Identifying specific circumstances and bringing them forward on time may provide a taxpayer much needed tax relief and may spare the taxpayer from penalties and interests.

The Canada Revenue Agency (“CRA”) lists four specific circumstances for which a taxpayer may qualify for relief:

  1. Extraordinary Circumstances: This is when the taxpayers business or personal life suffered devastating events beyond his or her control.
  2. Actions of the CRA: When the actions of the CRA result in misinformation or delays that affected a taxpayer’s submissions.
  3. Inability to Pay or Financial Hardship: This applies when making payments to the CRA could result in compromising the taxpayer’s ability to remain in business or maintain a reasonable lifestyle.
  4. Other: When a taxpayer’s situation does not fall within the previously listed.

Here are some other tips that may help you obtain taxpayer relief:

The Deadline: From the current tax year, the CRA will review tax relief requests regarding penalties, interests and refunds for a period of time dating back to a maximum of 10 years.

Next Steps: After having identified the taxpayer’s specific circumstance, and after having put together paperwork, then the taxpayer should submit his or her request for relief to the office assigned to his or her current location.

Once The Request Has Been Submitted: The taxpayer may be contacted by the CRA to notify about the decision to approve, partially approve of deny the taxpayer’s request for relief. To approve or deny a request, the CRA will consider the taxpayer’s specific circumstances as well as the actions that were taken to clarify the situation, within a reasonable time.

What To Do Following a Denied or Invalid Request: A denied request is not the end of the road. If the taxpayer disagrees with the outcome, he or she may object, as for a review or got to court. If the CRA decided that the taxpayer’s request was invalid, it is often as a result of incomplete paperwork or missed deadlines. Invalid requests do not prevent a taxpayer from submitting the request again.

For proper and complete representation, contact the lawyers at Barrett Tax Law and receive a consultation from an award-winning tax lawyer.

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