Successful Remission Order Application – Refund Obtained Despite 10 Year Limitation Period

A taxpayer request to the Canada Revenue Agency ("CRA") for a remission order is generally considered a method of last resort, when all other available options to obtain tax relief have been exhausted. The CRA's website states that a remission order is a rare and extraordinary measure, which will only be considered in exceptional circumstances, and the decision to grant remission is fully at the CRA's discretion. The purpose of remission is to provide full or partial relief from federal tax, interest or penalties, where relief is warranted but can't be achieved under applicable tax laws, through an assessment or other actions.

Remission can be granted pursuant to subsection 23(2) of the Financial Administration Act,¹ which provides that "The Governor in Council may, on the recommendation of the appropriate Minister, remit any tax or penalty, including any interest paid or payable thereon, where the Governor in Council considers that the collection of the tax or the