CRA tax relief deadline approaching

CRA is reminding taxpayers and registrants that they have until December 31, 2013, to make a taxpayer relief request related to 2003.

The deadline applies to taxpayer relief requests for:

• the 2003 tax year;
• any reporting period that ended during the 2003 calendar year; or
• any interest and certain penalties that accrued during the 2003 calendar year, for any tax year or reporting period.

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What is taxpayer relief?

The various laws that the CRA administers allow for the cancellation or waiver of penalties and interest when taxpayers and registrants are unable to meet their tax obligations due to circumstances beyond their control. The CRA may also accept certain late-filed, amended, or revoked income tax elections, and issue income tax refunds or reduce income tax payable beyond the normal three-year period.

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The 10-year limitation period for taxpayer relief

Taxpayer relief provisions are limited to a 10-year period. This means that the CRA may grant relief related to any tax year or reporting period that ended within 10 calendar years of the year the taxpayer relief request is made.

The CRA may also cancel or waive interest and certain penalties that accrued within 10 calendar years of the year the taxpayer relief request is made, regardless of the tax year or reporting period in which the debt originated.

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If you are a taxpayer or registrant involved in a tax process

Some taxpayers and registrants may be involved in a tax process with the CRA, such as an audit, objection, or appeal, for the 2003 tax year, or a reporting period that ended in 2003. If you are involved in a tax process and are not sure if you need to make a taxpayer relief request, you should make a request before the noted deadline of December 31, 2013.

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

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.