Determining a business’ financial situation

For requests to cancel or waive interest or penalties based on an inability to pay or financial hardship, the Canada Revenue Agency (CRA) requires full financial disclosure from a business. 

Note: For a business, financial hardship refers to situations when the continuity of business operations, the employees’ jobs, and the welfare of the community as a whole are jeopardized

It is the business’ responsibility to provide current documentation that supports their financial situation. Documentation could include, but is not limited to, the following:

• a statement of earnings, including:
  • dividends;
  • gross sales;
  • interest;
  • rental income;
  • other income;
     
• a statement of expenses, including:
  • cost of goods sold;
  • interest expense;
  • operating expenses;
  • other expenses;
     
• a corporate balance sheet and details of assets and liabilities, including:
  • type of asset, e.g., cash, term deposit, stocks, real estate, motor vehicles, inventory, investment in other entities, real property, other receivable;
  • value or current estimated market value;
  • list of accounts receivable;
  • name of creditor;
  • amount owed;
  • terms of repayment;
  • security held;
  • details of shareholder and interrelated third party loans.

Submit all documents to support your business’ financial situation with your request for relief. For more information, see Submit your request.