Requesting Taxpayer Relief: How & When

What Is Taxpayer Relief?

Taxpayer relief (also known as fairness provisions) is a program offered by the Canada Revenue Agency (CRA) that allows taxpayers to request relief from penalties, interest, or certain compliance requirements when circumstances beyond their control prevented them from meeting tax obligations.

While taxpayer relief does not eliminate the original tax owed, it can significantly reduce financial stress by cancelling or waiving penalties and interest.

When Can You Request Taxpayer Relief?

You may be eligible to request taxpayer relief if you experienced extraordinary or uncontrollable circumstances, including:

1. Personal Hardship

• Serious illness or accident

• Mental health challenges

• Death in the immediate family

• Natural disasters (fire, flood, earthquake)

2. CRA Errors or Delays

• Incorrect advice from the CRA

• Processing delays that caused penalties or interest

• Errors in CRA notices or reassessments

3. Financial Hardship

• Inability to pay basic living expenses

• Risk of severe financial distress if interest or penalties are enforced

The CRA evaluates each request case by case, considering fairness and reasonableness.

What Relief Can the CRA Grant?

If approved, the CRA may:

• Cancel or waive late-filing penalties

• Reduce or eliminate interest charges

• Accept late or amended elections, forms, or returns

⚠️ Important: Taxpayer relief does not cancel the actual tax debt.

How to Request Taxpayer Relief

Step 1: Gather Supporting Documents

Include evidence such as:

• Medical records

• Death certificates

• Insurance or disaster reports

• CRA correspondence

• Financial statements (if claiming hardship)

Step 2: Submit Your Request

You can request taxpayer relief by:

• Filing Form RC4288 – Request for Taxpayer Relief, or

• Submitting a written request through CRA My Account

Your request must clearly explain:

• What happened

• Why you couldn’t comply

• Which penalties or interest you want relieved

Step 3: Wait for CRA Review

CRA reviews typically take several months, depending on complexity. They may request additional information before making a decision.

Deadlines: How Far Back Can You Apply?

You can request taxpayer relief for penalties and interest charged within the last 10 calendar years.

For example, in 2025, you can request relief for amounts dating back to 2015.

What If the CRA Denies Your Request?

If your request is denied, you may:

• Request a second-level review, or

• Apply for judicial review through the Federal Court of Canada (within strict deadlines)

Professional tax guidance can significantly improve your chances during appeals.

Common Mistakes to Avoid

• Submitting incomplete explanations

• Missing supporting documents

• Requesting relief for ineligible amounts

• Waiting too long to apply

A well-prepared request improves approval odds.

Should You Get Professional Help?

While individuals can apply on their own, working with a tax professional ensures:

• Proper documentation

• Strong legal justification

• Clear communication with the CRA

At Tiki Tax, we help individuals and businesses prepare compelling taxpayer relief requests tailored to CRA standards.

Need Help Requesting Taxpayer Relief?

If you’re facing penalties or interest from the CRA, you don’t have to handle it alone.

👉 Visit https://www.tikitax.ca/ to speak with a tax expert and find out if you qualify for taxpayer relief today.