The taxpayer relief provisions give the CRA discretion to cancel or waive penalties or interest. The provisions can protect a taxpayer who is unable to meet their tax obligations due to circumstances beyond their control.
For penalties, the CRA’s discretion to grant relief is limited to any period that ended within 10 calendar years before the year in which a request is made. For example, your request made in 2020 must relate to a penalty for a tax year or fiscal period ending in 2010 or later.
For interest, the CRA will consider only the amounts that accrued during the 10 calendar years before the year in which you make your request. For example, your request made in 2020 must relate to the interest that accrued in 2010 or later.