CRA Interest Relief Options
Interest and penalty charges on tax debt can be very substantial, making it difficult to pay off what you owe. Find out you iCRA Interest Relief Options and how to get CRA interest relief. Farber Tax Specializes in advising and helping clients get relief from CRA interest.
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Requesting CRA Interest Relief
If you owe money to the Canada Revenue Agency (CRA) due to a late filing or a tax assessment/reassessment, and you’re not able to pay what you owe on time, the agency will charge penalties and interest. Depending on how much you owe, and how long you take to pay it, these costs can be quite substantial. Given this, it’s natural that many people find themselves searching for CRA interest relief.
One point to keep in mind is that when the CRA is owed money, it expects to receive what it is owed. Since the agency has very strong collection powers, it does not often negotiate with individuals when it comes to tax debt and it will not take less than what is owed to it. Communicating and negotiating with the CRA can be tough and following agency processes can be difficult as they are often very complex.
However, despite this, some CRA interest relief may be possible depending on your situation – and whether you can prove you are eligible for relief.
Having Interest and Penalties Waived
The CRA may grant relief from interest and penalties in situations where a taxpayer has been prevented from meeting their tax obligations through no fault of their own. Some situations where relief may be considered include:
- Actions of the CRA that resulted in the taxpayer being unable to file or pay on time
- This includes situations such as processing delays, incorrect information being provided by the CRA, errors in processing, and other such issues.
- Extraordinary circumstances
- This refers to situations such as natural or human-made disasters, serious illnesses or accidents, a death in the immediate family, serious emotional or mental distress, and other situations.
- Extreme financial hardship
- If interest and/or penalties represent a significant portion of the payments, or if payment of interest or penalties would cause an inability to afford basic life necessities, CRA interest relief may be granted.
- Other circumstances
- CRA interest relief may be considered in other situations, based on the discretion of the agency.
As you can see, the scope in which CRA interest relief may be offered is quite narrow. However, that doesn’t mean that having interest or penalties waived is impossible. What it does mean is that it’s critical to understand the situations as outlined and to have a strong case when dealing with the CRA and requesting relief.
Taxpayer Relief Provisions
When requesting relief, you will need to explain how your circumstances resulted in interest or penalties being charged, and how your situation falls into one of the circumstances listed above. To do this successfully, you will need to have proof in the form of documents and other such evidence to back up your case.
The CRA Taxpayer Relief Program is designed to help those who legitimately deserve and require relief. However, much like nearly all CRA interactions, it is critical that the process be handled correctly. Missteps or errors could result in your CRA interest relief application being denied.
Working with a professional who has experience in communicating with the CRA and a proven history of successfully requesting relief will increase your chances. At Farber Tax Solutions, our team knows how to form a strong case and successfully present it to the CRA. If you are looking for CRA interest relief, please contact us today to find out how we can assist.
Farber Tax Solutions Helps You at Every Step of the Way including:
- 1| Organizing: We analyze all documents and communication, to fight the CRA on your behalf
- 2| Audits: We assist you with audits and ensure proper conduct by tax authorities
- 3| Appeals: We can prepare a Notice of Objection, clarifying your standing with the CRA
- 4| Litigation: We represent you at all levels of court