FORM RC4288E Request for taxpayer relief (Assorted Topics)

yup I agree fully I fell I have to use the interest line as I believe if it came to a legal battle I think I could prove that deemed tax is in fact interest as it is applied and calculated the exact same way easier than I can prove its a penalty but like you said every different angle will help.

im wondering if you noticed at least the way ive been reading these acts, provisions and regulations that;

we because through no fault of our own have to pay deemed tax and have little to no chance for relief of this in the fairness provision.

a tax cheat pays a penalty and therefore has a much better chance of relief from that under the fairness provision than we do.

fairness provision my but.

just my opinion you are welcome to yours.

propat

Hey LTD4ME did you download the file from the cra web site

If you have been issued a T1198 form then you should be looking at filling out a request for taxpayer relief form, also know as a RC4288E.

It costs you nothing to fill it out and could potentially save you thousands of dollars

The reason for filling out this form is to contest the application of the notional interest used when CRA does recalculations based on your T1198

This Notional interest is a component used by CRA when calculating how much additional tax you would have been taxed on your retro income in the previous years as stated on your T1198

This Notional interest is also referred to as deemed tax or interest.

CRA uses this interest calculation to try and recoup interest for monies they did not receive in past years.

CRA states in the Income Tax Act that this calculated notional interest is not to be considered interest for any part of the Income Tax Act.

Because CRA don't want to call this notional interest what it really is ........and that is interest, they don't want to be held accountable for using it in their calculations.

I have taken the stance that since CRA does not want to call this interest i am calling it penalty.

Although it may not be construed as such in some cases, i feel it is in mine and many other vets case.

The tax act has provisions which allow the minister to wave interest or penalty under certain circumstances and for detailed reasons.

I have run with the intention of making this claim for taxpayer relief on the basis of the notional tax being a penalty not interest as one member here has already been denied for their claim of unfair interest and
CRA just came back and said it is not interest as stated in the tax act........crock of dog poo

So if you think you would like the chance to save potentially thousands of dollars fill out the RC4288E and submit it with your 2013 income tax return (cost you nothing and won't/can't hurt you)

I just recommend using the angle of calling it a penalty instead of interest.

Some points i have used in filling out the form (in my letter)

1). Minister, as authorized by Subsection 220(3.1) of the income tax act gives the Minister the discretionary authority to waive or cancel all or part of any penalty and interest otherwise payable by a taxpayer under the Act.

2). According to the Taxpayer Relief Provisions, "The Minister may grant relief from the application of penalty and interest where the following types of situations exist and justify a taxpayer’s inability to satisfy a tax obligation or requirement at issue:
(a) extraordinary circumstances

3). The Taxpayer relief Provisions also state that "penalties and interest may be waived or cancelled in whole or in part where they result from circumstances beyond a taxpayer’s control. Extraordinary circumstances that may have prevented a taxpayer from making a payment when due, filing a return on time, or otherwise complying with an obligation under the Act include, but are not limited to, the following examples: (here is where they give examples but pay attention to the part that says "not limited to " so just give your own examples.

4). I just went with this and after 4 pages of reasons why i felt it was extraordinary circumstances and out of my control i  figured it was time to stop and see what the tax man has to say

5). if it is denied you will have another chance to send in a second request, but at least you will have it submitted and on record in the event that anything comes up.

OK now what i put in the form

SECTION 2

1)
a) checked..... Penalty: cancellation or waiver........ reason "notional interest"
b) checked....... Interest: cancellation or waiver:...... reason  "notional interest"
c) no check
d) checked......Late, amended or revoked election:...reason  "Government of Canada delayed class action"

2 Reason(s):
check ......Other extraordinary circumstances:  then write as per enclosed letter (which is  a letter you write up indicating your grievances that are extraordinary circumstances and were out of your control)


I wont give all the reasons that i used in my request letter, as some people will just "cut and paste" on their request which would defeat the reason for this, I feel the more people that come up with their own reasons to fight this the more angles we will have as a group, and if someone does get granted relief hopefully they will then share how they got it with the rest of us.

Hope this clarifies and helps some, feel free to give input, actually i encourage it.

Best of Luck

regards

LTD4me


OK here is a sample


FEEL FREE TO COMMENT ON ANY OR ALL PARTS

As I am a  member of a class action law suit (federal court file number T-463-07), I have been authorized as described in the enclosed letter from Canada Revenue Agency, Legislative Policy and Regulatory Affairs Branch dated February 12, 2013 RE: Manuge Litigation, under paragraph "Qualifying Retroactive Lump-sum Payment, to file a T1198 form with my 2013 income tax return.

  I am in the belief that, for many legal and ethical reasons, the "interest calculated component" referred to as the notional interest, which reflects the delay in payment of tax on the retroactive lump sum payment, in the mechanism of calculating notional tax, should not apply, when the Canada Revenue Agency recalculates my taxes using the enclosed completed form T1198, which is based on being taxed in the year that the income in question should have been taxed.

I feel the Minister, as authorized by Subsection 220(3.1) of the income tax act gives the Minister the discretionary authority to waive or cancel all or part of any penalty and interest otherwise payable by a taxpayer under the Act. The request must be made within the 10-year time limit described" which in my case are between the years 2004 and 2013 inclusive.

   According to the Taxpayer Relief Provisions, "The Minister may grant relief from the application of penalty and interest where the following types of situations exist and justify a taxpayer’s inability to satisfy a tax obligation or requirement at issue:
(a) extraordinary circumstances
(b) actions of the CRA
(c) inability to pay or financial hardship"

I take note to the situation (a) extraordinary circumstances

The Taxpayer relief Provisions also state that "penalties and interest may be waived or cancelled in whole or in part where they result from circumstances beyond a taxpayer’s control. Extraordinary circumstances that may have prevented a taxpayer from making a payment when due, filing a return on time, or otherwise complying with an obligation under the Act include, but are not limited to, the following examples:
(a) natural or man-made disasters such as, flood or fire;
(b) civil disturbances or disruptions in services, such as a
postal strike;
(c) a serious illness or accident; or
(d) serious emotional or mental distress, such as death in
the immediate family"

I take note to the statement "but are not limited to the following examples"

  I believe the above provisions were designed to promote and provide fairness to taxpayers and after reading my reasons for taxpayer relief i am assured that if fairness is applied then tax relief should be granted.


  I submit that, the aforementioned statements should be taken into consideration when reviewing my request for taxpayer relief  for the following reasons

1). The oxford dictionary states the definition of the word  penalty as "A disadvantage suffered as the result of an action or situation"

2). I contend that the amount calculated under paragraph 120.31 (3) (b) of the Act, in particular the interest calculated portion or Deemed tax (notional interest) portion is calculated using a refund interest rate and according to the 1999 Department of Finance Technical notes which state's that the " notional amount of Interest... is not considered to be Interest for any purpose of the Act.". I on that basis, am of the view, that the amount determined in paragraph 120.31(3) (b) of the income tax act, is not Interest, and therefore by definition in the manor in which this NON interest is applied to the computation of the notional tax and  by means of being calculated in exactly the same manor in which an interest calculation would be made, must therefore be considered to be a penalty if not interest.

3). I was not in position of the said income, in the years in question.  it was beyond my control to make any calculations to include such income in said years taxes and therefore this in its self should warrant extraordinary circumstances.

4). The government of Canada which includes the Canada Revenue Agency, for XX years had all of my Gross offset income, all $XXX.XXX.XX of it. For XX years they were collecting interest on MY $XXX.XXX.XX. I assert that in essence the interest they received on my monies over XX years should have more than paid for any future notional interest calculation. This would be considered extraordinary circumstances by any means.

5). If I had actually received the offset in the years to which they related, I would have been taxed at a lower marginal rate. But because i did not receive the offset when i should have i have been disadvantaged by the notional tax calculation compared to other recipients who received  the same income with no offset in the same relevant years.

6). Because the Government of Canada decided to challenge the class action law suit, many years of litigation were incurred which made it beyond my control to claim or calculate any of the said taxable income.

7). I have a solid history of complying with all tax obligations.

Cool. My claim to the Minister to waive the penalties is in no way, to arbitrarily reduce or settle any tax debt but to correct and prevent a wrong, that will be done, if the notional interest is factored in on the recalculation of my previous 10 years income tax returns.

9). I argue that the intent of sections 110.2 and 120.31 of the Act is to provide relief to taxpayers by giving them the benefit of paying the lower of the two calculation methods fairly can not be accomplished fairly in my case. I insist the fact that it would not be in good faith to charge a notional interest on income that was never in my position for said calculations, therefore enabling the minister to waive the amount of penalty (notional interest) under authorization in the income tax act subsection 220 (3.1) of the Act"

10). On moral and ethical grounds if the minister can offer to waive penalty and fines to thousands of Ontario, Quebec and Atlantic province tax payers for delays in filing of their 2013 tax forms, just because of a few weeks of power outages, then it should be just as legally easy to accommodate a disabled veteran who served his country faithfully and with honor, who beyond his control did not pay taxes in the year that he should have, only because he never had the taxable income in those years.

For your consideration