If you’ve been hit with CRA penalties or interest, you may not have to pay all of it. Canada’s Taxpayer Relief Program gives the CRA discretion to cancel or waive penalties and interest in qualifying circumstances.
What Can Be Waived?
- Late filing penalties
- Late payment penalties
- Failure-to-remit penalties
- Compound daily interest on outstanding balances
The underlying tax principal cannot be waived. Requests must relate to the 10 calendar years preceding your request.
Who Qualifies?
1. Extraordinary Circumstances
Serious illness, mental health conditions, natural disasters, postal strikes, death of a family member.
2. CRA Errors or Delays
If the CRA gave you incorrect information or caused unreasonable processing delays.
3. Financial Hardship
If paying would prevent you from meeting basic living expenses or threaten business viability.
How to Apply: Form RC4288
Submit Form RC4288 through CRA My Account, My Business Account, or by mail.
Tips to Get Your Application Accepted
- Document everything — Medical records, financial statements, correspondence
- Show the direct link — The circumstance must have directly caused the non-compliance
- File all outstanding returns first — The CRA won’t grant relief with unfiled returns outstanding
- Continue making payments — Shows good faith while your request is reviewed
- Be accurate — Inconsistencies undermine your credibility
Second Review Option
If denied, you can request a second review by a different CRA officer, or pursue Federal Court judicial review.
Dealing with CRA penalties? CMP Accounting can help you assess whether you qualify and prepare a compelling application.