How Do You Request a Waiver or a Cancellation of Taxes?

It is possible to waive or cancel taxes, either partially or fully, if they find it reasonable to do so after taking into account all relevant factors. These factors include but are not limited to, whether the tax was a result of a reasonable mistake if the transaction that gave rise to the tax also resulted in another tax under the Income Tax Act, and the extent of payments made from the person’s registered plan. It is important to note that this waiver or cancellation only applies to taxes paid under anti-avoidance rules and does not cover any other taxes under the Income Tax Act.

To be able to consider your request for waiving or canceling the tax liability, they require a letter that outlines the reason behind the tax liability and provides justification as to why it would be fair to waive or cancel all or a portion of the tax. Find out more here.