Have you fallen behind with tax filings? As you can imagine, over the past couple of years, there are many taxpayers that have fallen behind on tax filings, as other matters have taken precedent in their lives. We all know that a failure to comply with the Canada Revenue Agency (“CRA”) filing deadlines can result in significant penalties and interest.
What many taxpayers are not aware of is the fact that the CRA may grant relief from penalties and interest under the taxpayer relief program in certain circumstances. The following situations are considered by the CRA when determining whether to grant relief:
Extraordinary circumstances, such as, a natural disaster (i.e. flooding), a civil disturbance (i.e. postal strike), a serious illness, emotional distress and/or a life altering event (i.e. death in the family).
Actions of the CRA, such as a CRA processing error or a CRA processing delay.
Inability to pay or financial hardships; and/or
Other circumstances, which provides the CRA with flexibility to provide relief on a case-by-case basis.
When considering providing relief, the CRA will provide additional leniency to those taxpayers with a history of compliance with tax obligations and those who have exercised a reasonableness of care and/or have not been negligent.
As a result, it is imperative that your first submission clearly outlines a timeline of the facts and reiterates your previous compliance with the CRA in the past.
For those applying for taxpayer relief for the first time, the CRA may grant relief in any year that ended within 10 years before the calendar year in which a taxpayer’s request is made or a return is filed.
Are you behind with your tax compliance? Do you think you qualify for relief? Please reach out to one of our team members to assist with the taxpayer relief application process.
VC Partners LLP is a boutique accounting, tax, audit, and consulting firm, located in the GTA.
#YourFutureOurBusiness