CRA REQUEST FOR
If your business doesn’t pay its taxes on time in Canada, the Canada Revenue Agency (CRA) starts charging interest and penalties. Those fees continue to accrue until you pay the tax. Often, they can end up being more than the original tax bill.
Taxpayer relief waives or cancels the penalties and interest due but doesn’t eliminate the tax debt itself. Depending on your situation, you can request taxpayer relief to reduce your tax burden significantly. Learn more about the process and see if you qualify.
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What Tax Relief Is Available?
In Canada, eligible taxpayers can request relief from paying penalties and interest. You can’t request relief from paying taxes entirely. Any tax you owe will still be due after you file for relief.
You need to file form RC4288 to request for taxpayer relief. You can submit your taxpayer relief application online or mail a paper copy of the completed form.
It’s worth noting that tax relief isn’t the same as an objection, although both have similar end goals. You can object to a tax assessment or penalty if you believe CRA is in error. Tax relief would ease your financial obligation if an extenuating circumstance prevented you from paying your tax or filing on time.
Who Qualifies for Tax Relief?
You need to have a legitimate reason for requesting tax relief and provide evidence of the reason when you submit form RC4288. Some of the reasons for qualifying for tax relief include:
- Natural disasters, such as a flood
- Human-made disasters, such as a fire
- Death, serious illness, emotional or mental distress or accident
- Financial hardship
- Strikes and other service disruptions
- Delay or error on the part of CRA, such as inaccurate information from CRA or delays in resolving an audit
Benefits of Filing Your RC4288 Tax Relief Form Through CPA4IT
Qualifying for tax relief can significantly reduce your company’s tax burden. For the best results, your taxpayer relief application should be complete and thorough the first time you submit it. The best application will have a strong case with plenty of supporting evidence.
While you can submit RC4288 on your own, it’s helpful to work with a professional tax consultant when preparing the form. A tax consultant reviews your form before submission and confirms you have a strong reason for requesting relief. Your consultant can help you phrase your reason for requesting relief in a way that increases the likelihood of approval.
The tax consultants at CPA4IT can review your situation with you and help you determine if you can qualify for relief. We’ll look at previous cases to see if taxpayers in similar situations were awarded a full or partial penalty and interest relief. We specialize in working with clients in the IT, medical and real estate industries and are familiar with the unique tax challenges individuals and entities in those industries face.
Schedule a Consultation With CPA4IT Today
If you’re facing hefty tax penalties and interest, relief is available. Schedule a free consultation with CPA4IT today to learn more about your options and start your relief application.