Remission Orders

What Are Remission Orders?

A Remission Order is a discretionary tax relief measure granted by the Canada Revenue Agency (CRA) in cases where enforcing full tax obligations would be unfair, unreasonable, or against the public interest. Unlike other tax relief programs that apply only to penalties and interest, a Remission Order may reduce or eliminate the principal tax amount owed, making it one of the most powerful forms of tax relief available in Canada.

At KR Law Firm, our tax lawyers assess eligibility, prepare strong applications, and advocate for clients seeking remission orders to reduce tax burdens effectively.

When Can You Request a Remission Order?

The CRA considers Remission Orders only in exceptional circumstances, such as:

• Extraordinary Circumstances: If an event beyond your control (e.g., severe illness, natural disaster, accident) prevented timely tax compliance.
• Significant Financial Hardship: If paying the full tax amount would cause undue financial distress, jeopardizing essential living exenses.
• CRA Errors or Delays: If the CRA made processing errors, unreasonable delays, or incorrect assessments that led to financial hardship.
• Unintended Tax Consequences: If tax liabilities arose due to unintended consequences of tax legislation that would make strict enforcement unfair.

For more details on when to request a Remission Order, visit the official CRA guide: When to Request a Remission Review

How to Apply for a Remission Order?

The application process for a Remission Order involves several critical steps:

1. Eligibility Assessment

Before submitting a request, you must determine whether your situation qualifies under CRA guidelines. The CRA does not grant remission for routine tax disputes that can be resolved through other means, such as Notices of Objection or Tax Court appeals.

2. Preparing a Strong Application

A well-prepared Remission Order request must include:

• A detailed explanation of why you qualify for remission.
• Supporting documents, financial records, and evidence proving your circumstances.
• Legal arguments demonstrating why remission is fair and reasonable in your case.

3. Submitting the Request to the CRA

Remission requests are reviewed by the CRA’s Remission Committee and ultimately require approval from the Minister of National Revenue. Given the discretionary nature of these orders, strong legal representation is crucial for maximizing the chances of success.

Learn more about the application process: How to Make a Remission Request

What Happens After You Apply?

Once submitted, the CRA will review your remission request, which may involve:

• Assessing your supporting documents for validity and completeness.
• Requesting additional information or clarification on specific points.
• Determining whether remission is warranted based on fairness and public interest.

The review process can take several months. If your request is denied, you may have options to challenge the decision, and our tax lawyers can explore further legal remedies.

For more details on the review process, visit: After You Make a Remission Request

How Our Tax Lawyers Can Help with Your Remission Order Request?

At KR Law Firm, we provide comprehensive legal assistance for Remission Orders, ensuring that your case is thoroughly prepared and strategically presented. Our services include:

• Eligibility Assessment: Determining whether you meet the CRA’s remission criteria.
• Crafting a detailed remission request supported by legal arguments and documentation.
• Handling all CRA communications, advocating for approval, and appealing unfavorable decisions if necessary.

For official CRA information on Remission Orders, visit: CRA Remission Orders Program