Canada Revenue Agency

Canada Revenue Agency

November 21, 2011 15:54 ET

Taxpayer Relief Deadline Is December 31, 2011

OTTAWA, ONTARIO--(Marketwire - Nov. 21, 2011) - The Canada Revenue Agency reminds taxpayers and all tax registrants that they have until December 31, 2011, to file requests under the taxpayer relief provisions for the 2001 tax year and any reporting period that ended during the 2001 calendar year.

The taxpayer relief provisions of the Income Tax Act limit the discretion of the Minister of National Revenue to cancel or waive penalties and interest; to accept certain late-filed, amended, or revoked income tax elections; and to issue income tax refunds beyond the normal three-year period (for individuals and testamentary trusts only). This limit applies to tax years that ended within the 10 calendar years immediately preceding the calendar year in which a request is made. However, there has been a change in how the CRA administers the 10-year time limit for interest relief requests related to a tax debt for a tax year that ended more than 10 years ago.

The taxpayer relief provisions of the Excise Tax Act (both for GST/HST and non-GST/HST purposes) limit the Minister's discretion to cancel or waive interest and certain penalties. This limit applies to reporting periods that ended within the last 10 calendar years preceding the year in which a request is made. However, there has been a change in how the CRA administers the 10-year time limit for interest relief requests related to a tax debt for a reporting period that ended more than 10 years ago.

In June 2011, the Federal Court of Appeal rendered a decision in Bozzer v. CRA (2011 FCA 186). As a result of this decision, the Minister's discretion allows for the cancellation or waiver of interest that accrues during the 10 calendar years preceding the calendar year in which the request for relief is made, regardless of the year in which the tax debt arose.

This change also applies to interest relief requests made under the taxpayer relief provisions of the Air Travellers Security Charge Act, Softwood Lumber Products Export Charge Act, 2006, and the Excise Act, 2001.

Some taxpayers or registrants may be involved in a tax process with the CRA (for example, an audit, objection, or appeal) for the 2001 tax year or a reporting period that ended in 2001. Some taxpayers or registrants might not be sure if they need taxpayer relief in their situation. If so, they should make a request before the deadline. Any request-related information that is not available at deadline time can be sent later.

Taxpayers and registrants or their authorized representatives can make a taxpayer relief request by completing Form RC4288, Request for Taxpayer Relief.

For more details on asking for relief, see Taxpayer Relief on the CRA Web site.

FOR BROADCAST USE

The Canada Revenue Agency reminds taxpayers and all tax registrants that they have until December 31, 2011, to file requests under the taxpayer relief provisions for the 2001 tax year and any reporting period that ended during the 2001 calendar year.

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Contact Information

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    Canada Revenue Agency
    (613) 941-6269