What is the CRA Taxpayer Relief Program (TPR)?

If you are struggling to pay your tax debt, you may have a remedy with the CRA's Taxpayer Relief Provisions. Get Farber Tax to assess your situation and help you get relief on your tax debt.

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What is the Taxpayer Relief Program (TPR)?

 

If you are struggling to pay your tax debt, you may have a remedy with the CRA’s Taxpayer Relief Provisions. Under subsection 220(3.1) of the Income Tax Act, the CRA can grant relief on penalties and interest on tax debt that arose from the past 10 years. In their Information Circular, the CRA has identified three situations where they are willing to grant relief.

 

Extraordinary Circumstances

 

First, the CRA may be willing to reduce your tax debt if “extraordinary circumstances” have occurred. The CRA has considered factors including postal strikes, natural disasters, serious illnesses, or deaths in your immediate family.

 

CRA Errors

 

Second, if actions of the CRA influenced your tax debt, you may qualify for taxpayer relief. For example, if you were misled by a CRA publication or the CRA delayed your file and you were assessed as a late filer, these are errors that are on the CRA, not you.

 

Financial Hardship

 

Third, if you can demonstrate an inability to pay or financial hardship, the CRA may grant you relief. The threshold for this condition is a severe one. You must demonstrate that the tax debt, primarily the interest, has accrued to such a point where it is impossible to pay off the debt, and still be able to provide basic necessities for yourself.

 

In special circumstances, the CRA has been willing to grant taxpayer relief even when it falls outside of these three general categories. These situations are very rare, and you should consider seeking legal advice before you decide to proceed with the request.

 

In any request, you must prove that the circumstance was beyond your control. You have to prove that it specifically interfered with your ability to comply with your tax obligations, such as filing your taxes or paying off your debts.

 

If one of these extraordinary circumstances has occurred to you, your tax debt may be the last thing that you want to consider. Please contact us today and we can assist you with submitting a request to the CRA for taxpayer relief.

Farber Tax Solutions can help you successfully deal with CRA problems. We utilize the experience of our tax experts to:

  • 1| Offer a comprehensive solution that is focused on achieving the most favourable possible outcome for your tax issue;
  • 2| Communicate with the CRA on your behalf and navigate the entire CRA dispute process; and
  • 3| Offer a complete solution to your tax problems, including ex-CRA professionals and tax lawyers from Farber Tax Law.