CRA reminds taxpayers that they have until Dec. 31, 2017, to make taxpayer relief requests related to 2007.
The deadline applies to relief requests for:
- the 2007 tax year,
- any reporting period that ended during the 2007 calendar year and
- any interest and penalties that accrued during the 2007 calendar year for any tax year or reporting period.
In a release, CRA says that, if taxpayers are involved in a tax process with the agency—including an audit, objection, or appeal for the 2007 tax year, or a reporting period that ended in 2007—and are unsure if they need to make a taxpayer relief request, they should make a request before the Dec. 31, 2017, deadline.
Taxpayers or their authorized representatives can make a request to CRA to cancel penalties or interest by filling out Form RC4288 Request for taxpayer relief—Cancel or waive penalties or interest and submitting it to CRA along with all supporting documentation.
Taxpayers should also note that, last week, CRA said it will tighten eligibility criteria for its Voluntary Disclosure Program to target taxpayers who have avoided their tax obligations—specifically the wealthy and corporations.
About tax relief
CRA administers legislation that gives the minister of National Revenue discretion to:
- cancel or waive penalties or interest;
- accept certain late, amended or revoked elections (income tax only); and
- refund or reduce the amount payable beyond the normal three-year period (individuals and testamentary trusts only).
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; or
- other circumstances.
Taxpayer relief is limited to tax years or reporting periods that end within 10 calendar years of the year the taxpayer relief request is made. CRA may also cancel interest and penalties that accrued within 10 calendar years of the year the taxpayer relief request is made, regardless of the tax year or reporting period in which the debt originated.