CRA Interest Relief 2025 — Reduce Your Tax Debt, Stop Accruing Charges, and Regain Financial Control

When you owe the Canada Revenue Agency (CRA), interest doesn’t sleep. In 2025, CRA’s systems compound daily interest on outstanding balances—creating an endless cycle of debt that grows faster than most taxpayers can pay it off. But the law offers a way out. Through CRA’s Interest Relief provisions, you can request cancellation or reduction of interest if you’ve experienced financial hardship, illness, or circumstances beyond your control.

At Mackisen CPA Auditors Montreal, we help individuals and businesses across Canada eliminate unfair interest charges, negotiate repayment solutions, and restore compliance. Our CPA auditors and tax lawyers build strong, evidence-based Taxpayer Relief Applications that convince CRA to act—because fairness is your right, not a favor.

We don’t just slow your debt—we stop it from growing.

Legal and Regulatory Framework

Income Tax Act (Canada)

• Section 220(3.1): Authorizes CRA to cancel or waive interest in cases of financial hardship, illness, or CRA error.

• Section 161(1): Establishes CRA’s authority to apply daily compounded interest on unpaid taxes.

• Information Circular IC07-1R1 (Taxpayer Relief): Defines administrative criteria for granting relief.

• Section 165(1): Allows taxpayers to object to reassessments even while relief applications are pending.

Tax Administration Act (Quebec)
Revenu Québec also offers interest relief for taxpayers experiencing exceptional financial circumstances, natural disasters, or administrative errors.

Mackisen submits federal and Quebec relief applications together to maximize approval chances and coordinate outcomes.

Key Court Decisions

Browne v. The Queen (2022): CRA must evaluate a taxpayer’s financial situation before denying interest relief.
Campbell v. The Queen (2017): Taxpayers facing illness or hardship have legitimate grounds for interest cancellation.
Jordan v. The Queen (2009): CRA must provide written justification when denying a relief application.
Guindon v. Canada (2015): Penalties and interest can be reduced retroactively through the Taxpayer Relief Program.

These decisions confirm that CRA’s interest policies are not absolute—they can be challenged successfully.

Why CRA Charges Interest — and When You Can Get Relief

CRA interest is automatic, not personal. It’s applied whether the debt arises from late filing, reassessment, or administrative error. You can apply for relief if you’ve faced:

• Job loss or financial hardship.

• Serious illness, disability, or family emergency.

• CRA processing delays or administrative errors.

• Natural disasters or uncontrollable life events.

• Genuine effort to comply but inability to pay due to circumstances.

Interest relief can reduce years of accumulated debt, giving you a fresh financial start.

Mackisen’s Interest Relief and Tax Debt Resolution Strategy

1. Eligibility Assessment: Evaluate your CRA and Revenu Québec debt history and confirm qualification under relief guidelines.

2. Evidence Compilation: Gather income, medical, and financial records that demonstrate hardship or CRA error.

3. Relief Application Filing: Draft and submit a Taxpayer Relief request citing specific legal sections and court precedents.

4. Negotiation with CRA: Communicate directly with CRA relief officers to strengthen your case and expedite results.

5. Compliance Restoration: Develop a plan to prevent future interest accumulation through structured payment and filing systems.

Our strategy builds credibility, compassion, and compliance—turning your hardship into your defense.

Real Client Experience

A Montreal restaurant owner accumulated $68,000 in CRA interest after pandemic-related delays. Mackisen filed a hardship-based relief application supported by financial statements—CRA cancelled 90% of interest charges.
A Quebec self-employed designer faced $22,000 in interest due to accountant error. Mackisen proved administrative fault and achieved 100% cancellation within three months.

Common Questions

How much interest can CRA cancel? CRA can cancel up to 100% of interest if hardship or error is proven.
How far back can I request relief? Up to 10 years from the end of the affected tax year.
Does interest stop while CRA reviews my application? Not automatically—but Mackisen can request temporary suspension of enforcement.
Can I apply again if denied? Yes—with stronger evidence or updated financial information.

Why Mackisen

At Mackisen CPA Auditors Montreal, we specialize in giving taxpayers a second chance. Our combined CPA and legal team prepares professional, fact-driven relief applications that speak CRA’s language—and win results.

We know what CRA needs to say yes. With Mackisen, you don’t just reduce interest—you rebuild your financial freedom.

Call Mackisen CPA Auditors Montreal today for your 2025 CRA Interest Relief Consultation. The first meeting is free, and your relief starts immediately.