Taxpayer relief provisions
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Reminder: The CRA has resumed its work to address taxpayer debt. Benefit and credit payments and tax refunds may be applied to pay down outstanding balances. If your debt repayment causes significant financial hardship, please contact the CRA directly to discuss your options – even if you have a payment plan in place already.
Learn more about how specific benefits will be impacted at canada.ca/balance-owing.
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Cancel or waive penalties and interest
The Minister may grant relief from penalty or interest when the following types of situations prevent a taxpayer from meeting their tax obligations:
- extraordinary circumstances;
- actions of the CRA;
- inability to pay or financial hardship;
- other circumstances
For more information about the circumstances that may warrant relief from penalties and interest, see Cancel or waive penalties and interest.
Late, amended, or revoked elections
The Income Tax Act and its Regulations contain many election provisions that give you the opportunity to decide on an alternative tax treatment in conducting your financial affairs for income tax purposes. Most election provisions do not:
- permit you to file an election once the due date for making the election is missed; or
- give you the ability to modify or cancel an original election that was filed on time.
For details about the income tax elections that can be filed late, amended, or revoked, and how to send your request, see Late, amended, or revoked elections.
Refund or reduce the amount payable beyond the normal three-year period
For individuals (other than a trust) and graduated rate estates, the Income Tax Act sets a three-year limitation period from the:
- end of the tax year to file an income tax return to claim a tax refund
- date of the original notice of assessment to request an adjustment to an assessment issued for a previous tax year
As of January 1, 2016, a testamentary trust that is not a graduated rate estate can no longer file an income tax return or ask for an adjustment for a refund or reduction in tax payable after the normal three-year period has expired for the 2016 and later tax years. Testamentary trusts can file a return or ask for an adjustment for the 2015 and previous tax years.
To get more information about filing an income tax return to claim a refund or requesting an adjustment to a return beyond the normal three-year period, see Refund or reduce the amount payable beyond the normal three-year period.
Public service employees affected by Phoenix payroll system issues
If you believe that the penalties and interest assessed by the Canada Revenue Agency (CRA) for your 2016, 2017 or 2018 tax year are a direct result of Phoenix payroll system errors, you can submit a claim under the Phoenix Claims Process administered by the Treasury Board of Canada Secretariat. Each claim will be considered on its individual merits and settled based on valid receipts and other supporting documentation.
If you are not reimbursed through the Phoenix Claims Process for the penalties and interest assessed by the CRA, you can submit a request for review under the taxpayer relief provisions. Go to Cancel or waive penalties and interest for more information. Be sure to include the decision letter from your department or agency and any relevant documents when submitting your request.
For more information on the tax implications of Phoenix payroll issues, go to Frequently Asked Questions.
The Canada Revenue Agency (CRA) administers legislation that gives the Minister of National Revenue discretion to:
- cancel or waive penalties and interest
- accept certain late, amended, or revoked income tax elections
- issue a refund or make an adjustment to refund or reduce tax payable beyond the normal three-year period for an individual, a graduated rate estate, and for certain tax years, a testamentary trust
This legislation is commonly called the taxpayer relief provisions.
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