Cancellation of penalties or interest

We charge interest, compounded daily at a prescribed rate, on the total amount of penalties and interest outstanding. Interest and penalties are payable to the receiver general for Canada.

Cancellation of penalties or interest

The CRA administers legislation, commonly called the taxpayer relief provisions, that gives the CRA discretion to cancel penalties or interest when taxpayers are unable to meet their tax obligations due to circumstances beyond their control.

The CRA’s discretion to cancel penalties or interest is limited to any tax year, fiscal period or reporting period, as applicable, ending in any of the 10 calendar years before the year in which you make your request.

To make a request, fill out Form RC4288, Request for Taxpayer Relief – Cancel or Waive Penalties or Interest. For
more information about the cancellation of penalties or interest and how to submit your request, go to Taxpayer relief provisions.

Notice of assessment

We will issue a notice of assessment for the TFSA annual information return only if we apply a penalty.

Date modified:

2016-11-16