If you filed your 2012 tax return late and you owed money, you’re probably in no hurry to receive your Notice of Assessment from the Canada Revenue Agency, showing the amount of your late-filing penalty and arrears interest owing.
But if you feel that you’ve been unjustly charged a penalty or interest due to circumstances beyond your control, you should consider applying to the CRA under the “fairness provisions” for some relief.
The fairness legislation, introduced in 1991, gives the CRA the discretion to cancel or waive either all or a portion of any interest or penalties (but not the actual tax) payable.
But trying to argue that the “dog ate my tax return” may not be enough. For the fairness provisions to apply, the penalties and interest must have generally resulted from circumstances beyond your control. Examples of “extraordinary circumstances” may include: natural disasters such as a flood or fire, a serious illness or accident or serious emotional or mental distress such as a death in the family.
If your request for interest or penalty relief is initially turned down by the CRA, you can request that your case be reviewed a second time by the director of your tax centre or district office.
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