Guide to Tax Debt Relief Options Offered By the CRA
                     Struggling With Tax Debt?
You're not alone. CRA offers structured relief options to help you 
regain financial stability.
OVERVIEW
Your Path to Tax Debt Relief
01 02
Payment Arrangements Partial Payments
Spread payments over time with CRA-approved plans Reduce interest by paying what you can
03 04
Taxpayer Relief Insolvency Options
Request forgiveness of penalties and interest Consumer proposals or bankruptcy for severe cases
CRA Payment Arrangements
How It Works Key Benefit
• Use CRA My Account payment calculator Avoid aggressive collection actions 
• Call CRA to formalize agreement while maintaining account health
• Typical plans last 12 months
• Interest continues but collections stop
Make Partial Payments Count
Reduce Interest Show Cooperation Enable Flexibility
Payment applies to oldest debt first Demonstrates commitment to CRA Opens door to adjusted payment plans
RELIEF PROGRAM
Taxpayer Relief: Penalty & Interest Forgiveness
Check Eligibility
Eligibility Conditions
Gather Documentation
• Financial hardship or distress
• Natural disasters or health 
Submit RC4288
emergencies
• CRA processing delays
Receive Decision • Circumstances beyond your 
control
Relief covers last 10 years of interest and penalties—not principal tax amount
Working With CRA Collections
Act Before Collections Even in Collections
Propose modified repayment plan early to avoid CRA may still permit new payment arrangements to 
complications settle debt
Insolvency Options for Severe Tax Debt
Consumer Proposal
Pay portion of debt over 5 
years
No interest or penalties
Bankruptcy
Wipes most unsecured debts
Last resort for extreme 
cases
Why Insolvency Works
Stops Collections Freezes Interest Legal Protection
Immediate halt to CRA No more accumulating Insolvency legislation 
enforcement actions and penalties or interest charges compels CRA compliance
garnishments
Prevent Future Tax Debt
Track Filing Deadlines Stay Organized
Monitor Ontario GST and CRA Missing deadlines leads to 
payment schedules debt—prevention reduces 
stress
Act Quickly
Address CRA notices immediately to avoid penalties
Take Control of Your Tax Debt Today
Your Next Steps
• Contact CRA to discuss payment options
• Apply for taxpayer relief if eligible
• Consult Licensed Insolvency Trustee for 
severe cases
• Get professional help from tax experts