A fairness application — now usually called a taxpayer relief request — asks the Minister of National Revenue to use the discretion in subsection 220(3.1) of the Income Tax Act to cancel or waive interest and penalties. The request is made on Form RC4288.
Relief is generally considered in three situations: extraordinary circumstances such as illness, disaster, or a death in the family; actions of the Canada Revenue Agency such as errors or processing delays; and an inability to pay or financial hardship. The discretion is generally limited to the prior ten years, and it addresses interest and penalties rather than the underlying tax. A fairness application can be pursued alongside an objection, which addresses the tax itself.