Remission Orders

On October 28, 2009, a remission order for Adel Karadsheh was published in the Canada Gazette. The remission order relieved Mr. Karadsheh from a GST liability due to an incorrectly denied input tax credit that was created when he purchased a taxi cab.

A remission order is an order made by the Federal government under the Financial Administration Act. The order reduces or cancels any tax (including any interest) or penalty that a taxpayer owes when either: the collection of tax or the enforcement of a penalty is unreasonable or unjust, or when it is in the public interest to reduce or cancel the tax or penalty. Applications must be recommended by the Canada Revenue Agency (CRA) in order for the Federal government to grant the remission order.

In order for CRA to recommend an application for a remission order, the taxpayer must seek all alternative options available to reduce the tax or penalty. Therefore, the taxpayer must have exhausted all available avenues including, where applicable, a notice of objection, a notice of appeal, or a taxpayer relief request prior to any application for a remission order. CRA then screens the application to determine whether the application fits within its criteria for relief. CRA has four categories in which it will consider recommending a remission order: extreme hardship, incorrect departmental action or advice, financial setback coupled with extenuating factors, or unintended results of the legislation.