After you apply

If we need more information

Once the Canada Revenue Agency (CRA) has started reviewing your request, we may contact you if we need help understanding what you provided, or to get any missing information.

If we request additional supporting documents, you can submit them: 

• through My Account, My Business Account, or Represent a Client, using the Submit documents online service, or
• by mail to the address indicated in the letter that you received

Factors we use to make our decision

When circumstances beyond your control, actions by the CRA, an inability to pay, or financial hardship prevent you from meeting your tax obligations, the CRA will look at the following when determining whether to cancel or waive penalties and interest:

• your tax return filing and payment history
• if you knowingly let a balance owing exist which resulted in additional interest
• if you took reasonable care in managing your tax affairs
• if you acted quickly to correct any delay or omission

How long it will take

Taxpayers or their representatives can stay up to date with the status of their requests for relief of penalties and interest by using the Progress Tracker tool. To view the status of your request, go to "Progress Tracker" on the Overview page in your CRA My Account or Represent a client Account.

Note: If you have filed a request to cancel penalties and interest for an assessment that is either under objection or appeal, a final decision about the request for relief will not be made until the objection or appeal is resolved and all rights of appeal have expired. 

Interest charges will continue to accrue on any amount owing while your request for relief is being reviewed. Making full or partial payment of the total amount owing will contribute to reducing the amount of interest charged. If your request for relief is approved in whole or in part, interest will be cancelled. If you have made payment(s) toward your total amount owing, the cancelled interest may be refunded (with interest when applicable).

If your request for relief is approved

If the CRA approves your request for relief in whole or in part, those penalties and interest will be cancelled from your account. The CRA will generally issue a refund for any of the cancelled penalties and interest that you paid.

However, if you have debts from other tax years, other related tax accounts or outstanding tax returns, the following could happen:

• your refund could be applied to other debts
• your refund could be held until you file any past due returns

To find out more, refer to: Information Circular IC07-1R1 (paragraphs 90 to 99)

If you disagree with our decision

If you believe our decision was not fair and reasonable, there are recourse options available to you.

Second administrative review

You may ask for a second review. Go to Submit your request for more information or to submit your request online. Alternatively, you can send a letter to one of the following:

• the address provided in the decision letter you received
• by mail to the designated office, as shown on the last page of the form, based on your place of residence

A second review request requires the following:

• the reasons why you disagree with the CRA's decision, for example, not all information was considered, certain facts or details were missing or misinterpreted or not considered in their proper context
• any relevant new documents, new facts, or correspondence

In order for the CRA to remain impartial and transparent, none of the officials involved in the first review will conduct the second review.

Judicial review

If, you feel that we were not fair and reasonable, you can apply to the Federal Court for a Judicial review of our decision. You must do this within 30 calendar days of the date you received the decision.  It is recommended that you request a second administrative review before filing an application for judicial review.