If you are struggling with your tax debt a payment plan may be the way to resolve your problem. Setting up a payment plan with the CRA gives you a little more time to pay off your tax debts.
Unfortunately, penalties and interest will continue to be charged on your outstanding balance as you pay the debt off. You are required by law to pay the interest on your tax debt.
In some cases, CRA offers tax payer relief in the form of reduced interest and penalties. To qualify, you have to meet certain criteria such as the inability to pay or extenuating circumstances like illness that prevented you from meeting your obligations.
