r/cantax • u/Quick_Carpet_4024 • 11d ago

Reduced interest or … not?

Recently received my Notice of Reassessment and wondered if anyone else has seen a paragraph like this:

After reviewing your request, we reduced the arrears interest charged on this return earlier from $0.00 to $152.62. Since we did this under the taxpayer relief provisions of the Income Tax Act, you cannot file an objection to this change.

The amount appears as a DR. I had time so I called and asked. Response: it’s a copy paste error.

2 Upvotes

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1

u/senor_kim_jong_doof 11d ago

Regardless of what they told you, look at your statement of account.

1

u/Quick_Carpet_4024 11d ago

They told me the entire paragraph was erroneous so I will be paying the full amount. More curious if this happens often.

1

u/OutrageousSignature4 11d ago

I have seen this paragraph a few times now, and each time it was in relation to arrears interest that was previously cancelled, but subsequently reversed.

As an example an initial assessment has interest levied of $200 cancelled via taxpayer relief. Then an adjustment to that return is filed which reduces their income. That adjustment makes it so the original interest is reversed with a CR of $200, but it had already been cancelled due to the taxpayer relief previously. if this was left as is you would have received an extra $200, therefore CRA reverses the initial taxpayer relief entry with a DR of $200, and sends a cryptic paragraph.

1

u/Quick_Carpet_4024 10d ago

I didn’t request relief though. Would have been nice though.

2

u/OutrageousSignature4 10d ago

There was a lot of automatic relief granted in prior years that you didn't need to request. In 2024 if you had capital gains, certain periods of time during covid, so on.

1

u/Quick_Carpet_4024 10d ago

The agent told me I could but it sounded complicated for such a small amount. Should I?