What is remission?
A remission order is a rare and extraordinary measure.
Remission provides full or partial relief from federal tax, interest, penalty, or other debt paid or payable under legislation administered by the CRA. Remission may be considered where relief is warranted but can’t be achieved under applicable tax laws, through an assessment, or through other actions.
Remission is only considered in exceptional circumstances
Remission is discretionary and we will examine each request to determine if a remission review is appropriate in the circumstances. Not all requests are considered for review. If a request is considered, it’s subject to an in-depth review process. See How we review your request for more details.
Very few requests result in remission being granted. Broad concerns must be considered in assessing whether it’s in the public interest to recommend the extraordinary remedy of remission, including: maintaining the integrity of the legislative appeals process, the self-assessing nature of Canada’s tax system, taxpayers’ responsibility to understand and meet their tax obligations – and importantly – fairness to other Canadians.
Situations unlikely to be considered for review
Remission generally isn’t recommended if any of the following circumstances apply to the amount(s) requested for review:
- the circumstances affect the population as a whole, for example a downturn in the economy
- the appropriate recourse belongs with a third party and not the CRA:
- you entered into an arrangement with a third party that turned out to be fraudulent
- you engaged the services of a tax professional who makes an error or omission
- you entered into a business arrangement with negative tax consequences or with a third party who misled you
- you were non-compliant, such as:
- you missed deadlines as a result of a history of non-compliance with filing or remitting obligations
- you intentionally avoided or evaded tax obligations or payment of a tax debt
- you participated in domestic or offshore tax avoidance or evasion schemes
- the remission request is an attempt to re-visit an audit, objection, consent to judgment, Minutes of Settlement, or court decision because you were dissatisfied with the results
- you didn’t request to change a tax return or a reassessment, or file an election, a Notice of Objection, or further appeal a matter to court within the time limits, and you’re attempting to use remission to extend those time limits
- you are attempting to use remission for retroactive tax planning purposes because you’ve realized, subsequent to a transaction, that there was a more beneficial alternative
- granting remission would compromise the integrity of tax or benefit administration
However, even if the circumstances above are present, there may be extenuating reasons that would justify reviewing the request.
Who can request a remission review
You may request a remission review if you’re a taxpayer, including:
- an individual
- a corporation
- a small business
- a sole proprietor
- an employer or payer
- a partnership
- a trust
- an estate
- an organization, or
- a registered charity
You’ve paid or owe a federal amount which has been assessed, such as:
- federal income tax
- the goods and services tax (GST)/harmonized sales tax (HST)
- excise taxes or duties
- interest
- penalties, or
- other debt (for example, debts related to child and family benefits)
Situations that may be considered for review
We have developed guidelines which set out characteristics common in cases where remission has been granted. These guidelines assist us in reviewing remission requests.
Your request could still be considered for review even if your situation isn’t listed here.
- Extreme financial hardship
- Financial setback with an extenuating factor
- Mistake made by the CRA
- Unintended results of the legislation
Other circumstances may also be considered.
We consider each request on its own merits, based on relevant facts and your specific circumstances.