Tap Into Fairness Relief to Cancel Penalties

With the recent devastation of Hurrican Irene, many Canadians have been left to pick up the pieces. It is also difficult to forget the wildfires, tornados, and flooding that have impacted thousands the past summer.

Canadians who have suffered hardship should be aware that under the taxpayer relief provisions CRA can extend leniency, as it recently reminded taxpayers in a news release. Specifically, when taxpayers are unable to file a return or make a payment on time due to circumstances beyond their control, such as a natural disaster, interest and/or penalties can be waived or cancelled.

The court system can also help with fairness issues around the issue of filing deadlines. For example, following a 2010 case (Lacroix v The Queen, 2010 TCC 160), it was stated, to the corporate taxpayer's financial relief, that "unclaimed tax credits can be applied beyond the limitation period to reduce the net tax assessedî. For those who have already filed their returns in a timely manner, but did not take advantage of provisions available, claims may still be submitted.

Additional Educational Resources: EverGreen, Make Sure It's Deductible - Fourth Edition