30 October 2012 Ontario CTF Roundtable, 2012-0462901C6 - Waiver or Cancellation of Part XI.01 Taxes Payable

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

Principal Issues: What is the process for applying for relief under section 207.06 (waiver or cancellation of taxes payable under Part XI.01)

Position: Taxpayer or their authorized representative should forward a detailed written request to the TFSA Processing Unit (for TFSAs) or the RRSP Return Processing Unit (for RRSPs or RRIFs)

Reasons: See response.

Ontario CTF Conference – October 30, 2012
CRA Roundtable

Question #17 Application for waiver or cancellation of taxes payable under Part XI.01

How does one apply for relief under section 207.06 (waiver of tax on excess TFSA amount, RRSP advantage resulting from swap transaction, etc.)? Should this be done by way of Taxpayer Relief application or a request to the Director of the local office? If it's included in a Notice of Objection, does Appeals have jurisdiction to consider the request?

CRA Response

Section 207.06 of the Act provides the Minister with the authority to waive or cancel all or part of the taxes payable under Part XI.01 (Taxes in Respect of RRIFs, RRSPs and TFSAs) under certain conditions.

Taxpayers or their authorized representatives can make a written request for the waiver or cancellation of taxes payable under Part XI.01. To support the request, taxpayers should provide all relevant information including the following, where applicable:

• the taxpayer's name, address, and telephone number;
• the taxpayer's social insurance number, tax account number or Business Number, as the case may be;
• the name of the issuer or carrier of the registered plan and the plan number;
• the amount of tax for which a waiver is being requested and the years involved;
• a full description of the investment and any income or other related transactions that gave rise to the tax, including name of the investment entity, percentage ownership, date of acquisition, date of disposition, cost, proceeds of disposition, fair market value of investment;
• a complete history of events including what measures were taken, and when they were taken, to resolve the non-compliance;
• the facts and reasons supporting that the transactions that gave rise to the tax were mainly caused by factors beyond the taxpayer's control or by reasonable error; and
• whether the transactions that gave rise to the tax also gave rise to another tax.

It is important that taxpayers or their authorized representatives provide CRA with a complete and accurate description of the circumstances to explain why the taxpayer's situation should merit relief. Requests for relief should be forwarded to:

For TFSA:
TFSA Processing Unit
Post Office Box 9768, Station T
Ottawa ON, K1G 3X9

For RRSP or RRIF:
RRSP Return Processing Unit
Ottawa Technology Centre
875 Heron Road
Ottawa ON K1A 1A2

Jason R. Ward
October 30, 2012
2012-046290