Taxpayer Relief

Taxpayer relief refers to the discretion the Canada Revenue Agency has, under subsection 220(3.1) of the Income Tax Act and parallel provisions, to cancel or waive interest and penalties otherwise payable on a tax debt. The recognized grounds are extraordinary circumstances beyond the taxpayer's control, delay or error attributable to the CRA, and inability to pay or financial hardship. Relief is discretionary, applies only to interest and penalties (not the underlying tax), and is limited to amounts relating to tax years ending within the previous ten calendar years. The request is most commonly made on Form RC4288.