The taxpayer relief provisions can apply when a taxpayer has not
been able to
meet tax obligations due to extraordinary circumstances such as financial
hardship, disruptions in service such as a postal strike, an error in a CRA
publication, or a disaster such as flood or fire.
To make application under these provisions, taxpayers can complete form RC4288
- Request for Taxpayer Relief, and submit it to their local tax
June 2011 Federal Court of Appeal decision, Bozzer
v Canada, resulted in an outcome which benefited the taxpayer. As a
result, the taxpayer relief provisions can apply to reduce interest and
penalties which have accumulated in the 10 taxation years preceding the
request for leniency, even if the tax debt causing the interest arose prior to
that period. So, if a tax debt arose from the 1999 tax year, penalties
and interest that have accumulated from 2002 to 2011 could still be reduced as
a result of a 2012 request for leniency.