Taxpayer Relief

Subsection 164(1) – Refunds or Credits on Overpayment of Taxes Subsection 164(1) of the Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.)) primarily deals with the refund or credit of taxes paid in excess. Specifically, it governs how the Canada Revenue Agency (CRA) handles situations where a taxpayer has paid more tax than...

March 21, 2025 Government Announcement re: GST/HST and Corporate Tax Relief for Businesses Canada Revenue Agency (CRA) is implementing relief from GST/HST and corporate tax remittances for approximately 3 months.According to the government’s announcement businesses can “efer corporate income tax payments and...

Exporting a vehicle subject to the Select Luxury Items Tax Act (SLITA) can lead to a rebate of the Luxury Tax paid, but navigating the process involves adhering to specific conditions. This guide will break down the requirements and steps necessary to claim a rebate when exporting a luxury vehicle.  Understanding Section 39 of the Select Luxury...

Tax Free Savings Accounts (“TFSA”) have been available to Canadian resident taxpayers since 2009. Each year taxpayers can contribute an additional amount to their TFSA. As the name suggests, the income/capital gains earned in the account are tax-free. But what happens is you contribute more than you are allowed to?TFSA Over-Contribution...

Gross Negligence Penalties are penalties meant to punish taxpayers such as for their failure to report income or in claiming false credits. Depending on whether they are GST/HST, or Income Tax related, the penalty will add 25% or 50% to any balance owing.To issue a gross negligence penalty, the Canada Revenue Agency (“CRA”) must prove that...

When taxpayers owe money to the Canada Revenue Agency (“CRA”), the amounts can quickly rise because the CRA charges interest on top of the amount owing. Additionally, if you file late, the CRA will hit you with penalties, and they even charge interest on those penalties. Before you know it the amount you owe could be insurmountable.Interest...

Bulk Taxpayer Relief Requests & Extreme Weather Events Canada Revenue Agency (CRA) released guidance on “bulk” taxpayer relief requests as well as taxpayer relief for “extreme weather events.” CRA makes specific reference to the “unprecedented...