A Remission Order is a rare and final plea to the federal government to forgive a Canada Revenue Agency (CRA) tax debt. It is generally used when all other legal avenues are exhausted, and paying the debt would cause extreme, unresolvable financial hardship for a Canadian taxpayer.
Dealing with massive tax debt in Canada can feel incredibly isolating. Whether you live in Toronto, Vancouver, or a smaller rural community, falling severely behind on your Canada Revenue Agency (CRA) payments can lead to frozen bank accounts and wage garnishment. While most taxpayers use standard appeals or the Taxpayer Relief Program to reduce penalties and interest, these programs cannot legally forgive the principal tax amount you owe.
When a tax debt is financially ruinous, legally unresolvable, and completely destroys your ability to afford basic living expenses, there is one final, extraordinary option. 📍 You can apply for a Remission Order under the federal Financial Administration Act. This process essentially asks the Governor in Council (the federal cabinet) to wipe the slate clean. In this guide, we will walk you through this highly complex process and explain how a tax law firm can help you build a compelling case.
Step-by-Step Process for a Remission Order in Canada
Applying for a Remission Order is not a simple form you can download from the CRA website. It is a deeply involved legal and financial submission that must prove severe extenuating circumstances. Here are the general steps to follow.
Step 1: Exhausting All Standard Legal Avenues
Before the federal government will even look at a remission request, you must prove that you have tried everything else. 📝 This means you have already filed a Notice of Objection if you disagreed with the assessment, appealed to the Tax Court of Canada if necessary, and applied for the CRA Taxpayer Relief Provision to waive interest. A Remission Order is strictly a measure of last resort.
Step 2: Building the Hardship Case
You must gather extensive evidence proving extreme financial hardship or CRA error. Valid reasons often include severe illness, a catastrophic life event, or a situation where the CRA made a massive administrative error that ruined you financially. You will need to collect medical records, complete financial disclosures, and a detailed narrative of how the tax debt has impacted your life.
Step 3: Submitting the Application to the CRA
The application is initially submitted to the CRA’s Remission Committee. 📩 The CRA acts as the gatekeeper. They will review your entire history, assign an investigator, and evaluate if your case meets the strict federal guidelines for remission. A tax lawyer is highly recommended at this stage to ensure your submission is legally sound and emotionally compelling.
Step 4: The Final Recommendation to the Governor in Council
If the CRA agrees with your application, they will forward a recommendation to the Minister of National Revenue. From there, it goes to the Governor in Council for a final decision. If approved, the tax debt is legally forgiven. If denied, the decision is final, and you may need to explore a Consumer Proposal or bankruptcy to handle the debt.
How Much Does it Cost in Canada?
There is no government filing fee to request a Remission Order. However, because the legal arguments must be flawless and heavily documented, attempting this without a lawyer is generally not advised. As of May 2026, here is what you can expect to pay for professional help.
| Service / Expense | Estimated Cost (CAD) |
|---|---|
| Government Filing Fee | $0 |
| Lawyer Consultation & Review | $500 – $1,000 |
| Law Firm Drafting the Application | $5,000 – $15,000+ |
| Accounting & Financial Audits | $2,000 – $5,000 |
- Why so expensive? Drafting a Remission Order takes dozens of hours of legal research and factual compilation. It is essentially a comprehensive legal brief.
- Cost vs. Benefit: This route is usually only financially viable if your tax debt exceeds $100,000 CAD.
How Long Does the Process Take?
Patience is absolutely required. A Remission Order is the slowest administrative process in the Canadian tax system. It typically takes between 18 to 36 months to get a final decision. During this time, the CRA collections department may still attempt to collect the debt unless your lawyer successfully negotiates a temporary hold on enforcement.
Frequently Asked Questions (FAQ)
Will a Remission application stop wage garnishment?
Not automatically. Submitting an application does not grant a legal stay of proceedings. Your lawyer must negotiate directly with the CRA collections officer to temporarily pause garnishments or bank freezes while the application is under review.
Is a Remission Order better than declaring bankruptcy?
If successful, yes, because it wipes out the tax debt without destroying your credit rating. However, because Remission Orders are incredibly rare and hard to win, a Consumer Proposal or bankruptcy might be the more realistic and guaranteed legal solution for extreme debt.
Can I apply if the CRA made a huge mistake?
Yes. “Incorrect CRA action” is one of the valid grounds for remission. If a CRA auditor gave you incorrect written advice, or delayed your file for years resulting in massive interest, you may have strong grounds for relief.
Can I appeal a denied Remission Order?
Generally, no. The decision of the Governor in Council is final. You cannot appeal it to the Tax Court of Canada. In very rare cases, a lawyer might apply for a Judicial Review in Federal Court if the CRA’s review process was procedurally unfair.
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