Tax Relief for Alberta Flood Victims

On June 22, the Canada Revenue Agency (CRA) announced that taxpayers who have been affected by the recent flooding in the Calgary area would have access to the taxpayer relief provisions, if they were unable to meet their tax obligations on time.

Under the relief measures, the CRA will decide whether an applicant taxpayer will have their penalties waived or cancelled.

If a penalty or interest charge is waived, this means that relief has been granted for an amount that has not yet been assessed or charged. If a penalty or interest amount is cancelled, this means that relief has been granted for an amount that has already been assessed.

For corporations, those that are unable to file their T2 returns by the July 2 due to the flooding can make an application to have the interest and/or penalties that would normally accrue from the late filing waived or cancelled using Form RC4288, Request for Taxpayer Relief.

The CRA’s taxpayer relief measures are available to all Canadians. Applicants are considered for relief if they miss a filing deadline due to a natural disaster that affected their life or business. In fact, taxpayer is broadly defined for the purposes of the relief provisions; therefore trusts, partnerships, and organizations are eligible for relief.

Detailed information about the taxpayer Relief Provisions can be found here: http://www.cra-arc.gc.ca/taxpayerrelief/.