According to the Canada Revenue Agency, penalties and/or interest may be canceled or waived under certain circumstances. The criteria for cancellation or waiver of penalties and/or interest include situations where taxpayers are unable to meet their tax obligations due to circumstances beyond their control, such as natural disasters or serious illness, or in cases where the CRA has made errors or delays that resulted in the taxpayer’s failure to meet their obligations. Additionally, the CRA may consider canceling or waiving penalties and/or interest if doing so would be in the interest of fairness or if it would promote taxpayer compliance. It’s important to note that taxpayers must apply for the cancellation or waiver of penalties and/or interest, and the CRA will review each case on its own merits.
