Taxpayer Relief
Written in plain language for general understanding. This is educational content, not legal advice. Based on Canadian federal statutes and official sources.
What is this right?
The CRA has the power to cancel or waive penalties and interest under Subsection 220(3.1) of the Income Tax Act. This is called taxpayer relief (sometimes called "fairness provisions").
Relief can only apply to penalties and interest — not the tax itself. The CRA considers three grounds:
- Extraordinary circumstances — natural disaster, serious illness, accident, or emotional distress.
- CRA errors or delays — incorrect information from CRA staff, processing delays, or errors in CRA materials.
- Financial hardship — inability to pay that is caused by circumstances beyond your control.
There is a 10-year lookback period — you can request relief for any tax year within the past 10 calendar years.
To apply, complete Form RC4288 or submit a detailed letter explaining your situation with supporting documents.
When does it apply?
This applies to any taxpayer who has been charged penalties or interest by the CRA.
- You must demonstrate at least one of the three grounds: extraordinary circumstances, CRA errors/delays, or financial hardship.
- The 10-year lookback means you can only request relief for tax years within that window.
What should you do?
- Complete Form RC4288 — available online or by calling the CRA.
- Submit the form online through My Account or by mail.
- Provide a detailed explanation of your circumstances with supporting documents (medical records, insurance claims, CRA correspondence, financial statements).
- If your first request is denied, request a second-level review — a different officer will look at your case.
- If the second review is also denied, you can apply to the Federal Court for judicial review.
What should you NOT do?
- Don't wait too long — the 10-year lookback means older years fall off every January.
- Don't submit a vague or unsupported application — include specific dates, amounts, and documents.
- Don't assume "I forgot" qualifies — you need to show circumstances beyond your control.
- Don't confuse taxpayer relief with a payment plan — relief cancels penalties and interest, while a plan spreads payments over time.
- Don't give up after one denial — the second-level review is handled by a different officer who may reach a different conclusion.
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