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CGCPA
CGCPA, CPA
Category: Tax
Satisfied Customers: 3820
Experience:  over 40 years experience in tax matters
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We are a small business located in Ontario and have gotten

Customer Question

We are a small business located in Ontario and have gotten behind on our source deduction payments to the government. We have been hit with 10's of thousands of dollars in fines and interest. We have now paid the principal amount of the amounts owing and are now keeping up to date, however the interest and penalties keep growing. We cannot afford to pay this and want to know if there is any hope of getting this penalty and interest portion forgiven. It is really hurting our business and no bank will talk to us as long as we owe the government money. Any advice as to how to take care of this and get rid of the crippling debt?
Submitted: 6 years ago.
Category: Tax
Expert:  CGCPA replied 6 years ago.

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.

The problem here may lie in the lack of use of the correct form. The CRA does operate under statutes permitting them to eliminate/reduce any interest and/or penalties due to hardship. To request this relief you must use form RC4288. This form and the issue effecting you are explained in detail at the following link. If you file the proper form your case must be considered and either an acceptance (in part or in full) or denial will be provided to you. This is a time which takes time because a proper review of the situation must be made.

http://www.cra-arc.gc.ca/E/pub/tp/ic07-1/ic07-1-07e.pdf

Expert:  Tax.appeal.168 replied 6 years ago.
Hello, THANK YOU for choosing Just Answer. My goal is to help make your life...a little...LESS taxing.

PLEASE NOTE THAT IF YOU CHOOSE TO ACCEPT,...ACCEPT THE PREVIOUS EXPERTS ANSWER. I AM PROVIDING THIS ADDITIONAL INFORMATION TO YOU IN HOPES THAT YOU WILL GET A BETTER UNDERSTANDING OF HOW THE PROCESS OF WAIVING PENALTIES WORKS.

Refer to the following for a more detailed review of the process:

http://www.cra-arc.gc.ca/E/pub/gm/16-3/16-3-e.pdf
Customer: replied 6 years ago.
This seems top be for personal income tax relief not corporate payments. Does the same form apply to requesting relief of penalties and interest regarding source deductions?
Expert:  CGCPA replied 6 years ago.
Yes it does. Also the process is the same.
CGCPA, CPA
Category: Tax
Satisfied Customers: 3820
Experience: over 40 years experience in tax matters
CGCPA and other Tax Specialists are ready to help you