Thursday, May 24, 2012

Relief From Canadian Tax Penalties or Interest

 


If exceptional circumstances beyond your control result in you being charged tax penalties or interest by the Canada Revenue Agency (CRA), you might be able to get those charges reduced or cancelled. To get relief from tax penalties or interest you have to file an application request with the CRA. Types of exceptional circumstances that would be considered include disasters, such as a fire or flood, serious illness or accident, and mental distress, such as from the death of a family member. Penalties or interest caused by the CRA, like from long delays in an audit, are also considered. Serious financial hardship - to the extent of insolvency - is another circumstance the CRA looks at. You have to make your case and provide plenty of supporting documentation, but in some instances it might be worth it.


Photo: David Sacks / Getty Images


Canadian Income Taxes
Canadian Income Taxes - The Basics
Penalties for Filing Taxes Late
How to Change Your Income Tax Return
Income Tax Packages From Past Years


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