Taxpayer Relief in Alberta
Reviewed by the Commoner Law Editorial Team. Sourced from Canadian federal statutes and official sources. Provincial information reflects each province's own legislation and court rulings. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
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 to Do If the CRA Charged You Penalties or Interest You Believe Are Unfair
- 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.
How Alberta differs from federal law
The CRA has discretionary authority to grant relief from penalties and interest in certain circumstances, which applies to both your federal and Alberta provincial income tax.
- Under the taxpayer relief provisions (formerly called "fairness provisions"), the CRA can cancel or waive penalties and interest if you experienced extraordinary circumstances — such as a natural disaster, serious illness, death in the family, or actions of the CRA itself.
- Relief can also be granted for financial hardship — if paying the penalty or interest would cause undue hardship or make it impossible for you to pay the underlying tax debt.
- You can request relief for up to 10 calendar years from the date of your request. Requests beyond that period cannot be considered.
- Alberta-specific consideration: The 2016 Fort McMurray wildfire and the 2013 Calgary flood are examples of extraordinary events where the CRA granted widespread relief to affected Alberta taxpayers.
- The CRA can also grant relief by accepting a late-filed election or amending a previously filed election under certain tax provisions.
Additional Steps in Alberta
Submit a taxpayer relief request using CRA Form RC4288 (Request for Taxpayer Relief). Include documentation of the extraordinary circumstances or financial hardship. You can submit online through CRA My Account or by mail. If the CRA denies your request, you can ask for a second administrative review and then apply to the Federal Court for judicial review. Contact the Taxpayers' Ombudsperson at 1-866-586-3839 if you feel the process was unfair.
Relevant Law: Income Tax Act, RSC 1985, c. 1 (5th Supp.), s. 220(3.1) (Waiver of penalties/interest); CRA Information Circular IC07-1R1 (Taxpayer Relief Provisions)
Common Questions
When does taxpayer relief 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 I do if the CRA charged me penalties or interest in Canada that I think are unfair?
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 mistakes should I avoid with taxpayer relief?
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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