- A taxpayer relief decision is discretionary: the CRA is deciding whether to exercise a fairness power, not determining a fixed legal right the way an assessment does.
- Before going to court, the more practical first step is usually to request that the CRA conduct a second, independent review of your relief request, typically by a different, more senior…
- If the second review also results in a denial, the remaining option is to apply for judicial review — but not at the Tax Court.
A denied taxpayer relief request feels final, but it usually isn't the end of the road. Because taxpayer relief is a discretionary decision rather than a strict legal entitlement, the options for challenging a denial look different from a typical tax appeal — and understanding that difference matters before you decide what to do next.
First, Understand What Kind of Decision This Is
A taxpayer relief decision is discretionary: the CRA is deciding whether to exercise a fairness power, not determining a fixed legal right the way an assessment does. This distinction matters because it changes where you go to challenge it.
You cannot appeal a denied taxpayer relief request to the Tax Court of Canada the way you would appeal a reassessment. The Tax Court's role is to decide whether an assessment is legally correct; a relief decision is a different kind of question entirely — whether the CRA exercised its discretion reasonably and fairly.
Step One: Request a Second Review
Before going to court, the more practical first step is usually to request that the CRA conduct a second, independent review of your relief request, typically by a different, more senior decision-maker than the one who made the original decision.
A second review is your opportunity to address specifically why the original decision was wrong — not simply to resubmit the same request and hope for a different result. Useful things to include:
- Additional documentation that wasn't part of the original submission
- A direct response to the specific reasons given for the denial
- Clarification of any facts the original decision-maker may have misunderstood
Step Two: Judicial Review at the Federal Court
If the second review also results in a denial, the remaining option is to apply for judicial review — but not at the Tax Court. Because a taxpayer relief decision is an exercise of administrative discretion by a federal government agency, judicial review of it falls to the Federal Court, a different court from the one that hears ordinary tax appeals.
What Judicial Review Can and Can't Do
This distinction trips a lot of people up, so it's worth being explicit:
| Judicial review can do | Judicial review cannot do |
|---|---|
| Find that the CRA's decision was unreasonable, or that the process was procedurally unfair | Substitute the court's own view of what the "right" outcome should be |
| Send the decision back to the CRA for a fresh, corrected review | Order the CRA to grant the specific relief you requested |
| Consider whether the CRA properly considered your circumstances | Reassess the underlying tax, penalties, or interest itself |
In short, winning a judicial review usually means getting a second chance at a fair decision, not an automatic win on the merits.
Timing Matters — Act Quickly
Judicial review applications are subject to a strict, short deadline running from when you received the denial decision. This article deliberately does not state a specific number of days, because getting a filing deadline like this wrong can end your options entirely. If you're considering judicial review, confirm the current deadline immediately — ideally with a lawyer — rather than assuming you have ample time.
Building a Stronger Second Review
A second review is more likely to succeed when it does more than repeat the original request. Before you submit one, consider:
- [ ] Have you obtained the CRA's specific written reasons for the denial, rather than guessing at them?
- [ ] Does your submission respond directly to each reason given, rather than restating your original story?
- [ ] Have you added any documentation that wasn't in front of the original decision-maker?
- [ ] Have you addressed your compliance history, including anything that might otherwise look unfavourable?
- [ ] Have you kept a clear record of every document submitted and when, in case judicial review becomes necessary later?
Frequently asked questions
Can I skip the second review and go straight to judicial review?
Generally, courts expect you to have exhausted the CRA's internal review options first, though the specifics can depend on your situation. Speak with a lawyer before deciding to skip a step.
Does requesting a second review pause any collection action?
Not automatically — a taxpayer relief request or its review doesn't necessarily halt collection of the underlying tax debt. Ask about payment arrangements separately if that's a concern while your request is pending.
If I win at judicial review, do I automatically get my penalties cancelled?
No. A successful judicial review typically sends the matter back to the CRA to make a new decision properly — it doesn't guarantee that the new decision will grant the relief you originally requested.
Is it worth hiring a lawyer just for a second review, or should I wait until judicial review?
A well-prepared second review has a real chance of succeeding without ever needing court involvement, and addressing the CRA's specific concerns early can save significant time and cost compared to judicial review later.
Will the same CRA officer who denied me the first time handle my second review?
Typically not — a second review is meant to be conducted by a different, more senior decision-maker than the one who made the original decision, which is part of why it's worth pursuing before assuming the outcome is fixed.
This is a tax question
Start a file online — flat, published fees, reviewed by a licensed Ontario lawyer before a dollar is owed.