News from the Canada Revenue Agency

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published: 12/20/2021

With the holidays just around the corner, scammers could contact you pretending to be from the Canada Revenue Agency (CRA). Scammers are trying to trick individuals into making payments, and we’re doing everything we can to put a stop to this. That includes letting you know when and how we might contact you.

How to make sure the caller is a CRA employee and not a scammer

A legitimate CRA employee will identify themselves when they contact you. The employee will give you their name and a phone number. Make sure the caller is a CRA employee before you give any information over the phone. This will protect you from giving money or personal information to a scammer. 

If you’re suspicious, this is how you can make sure the caller is from the CRA:

  1. Tell the caller you would like to first verify their identity.
  2. Request and make a note of their:
    • name
    • phone number
    • office location
  3. End the call. Then check that the information provided during the call was legitimate by contacting the CRA. Please do this before you give any information to the caller. 

Once you complete those three steps, you may call back the CRA employee to discuss the reason for their call.

Note that our individual tax, benefits and business enquiries lines offer an automated call back service. When wait times reach a certain threshold, you will be given the option of a callback, rather than waiting on hold. If you opt for a callback, we will give you a randomized four-digit confirmation number. This number will be repeated back to you by the call centre agent at the time of the callback. This is to provide you with assurance that the call is from a legitimate CRA employee.

When to be suspicious

Red flags that suggest a caller is a scammer include (but are not limited to):

  • The caller does not give you proof of working for the CRA. For example, their name and office location.
  • The caller pressures you to act now or uses aggressive language.
  • The caller asks you to pay with prepaid credit cards, gift cards, cryptocurrency or some other unusual form of payment.
  • The caller asks for information you would not enter on your return or that is not related to money you owe the CRA, for example, a credit card number.
  • The caller recommends that you apply for benefits. You can apply for benefits directly on Government of Canada websites or by phone. Do not give information to callers offering to apply for benefits on your behalf!

For more tips and helpful information, visit our Be Scam Smart or Slam the scam pages.

We may review your return

One reason we may contact you is if we are reviewing your income tax and benefit return. This could include reviewing you GST/HST, T4 or T5 information. You may receive a letter or a phone call telling you that the CRA is reviewing your return. If you're registered for email notifications, we will send you an email telling you that your letter is available in My Account. In most cases, our review is a routine check. It’s important that you reply and send all of the information requested as soon as possible. This will help us review your file quickly and easily.

It’s also important that you call the number in your letter in either of the following situations:

  • You can’t get the documents we’re asking for
  • You need more time to reply

By calling, we can give you more time to respond if you need it. We can also help you if you have any questions. If you don’t reply, we may disallow a claim of yours and you could have a balance owing.

If you own a small business or are self-employed, we may call you or send you a letter to offer free tax help through our Liaison Officer service. This will be the first contact. We will only use email if you provide your email address and consent to the CRA.

Want to report a potential scam?

You should report a scam if you suspect either of the following:

  • you have been the victim of fraud
  • a scammer has tricked you into giving personal or financial information

To report a scam, visit antifraudcentre.ca, follow the instructions on our Be Scam Smart page, or call 1-888-495-8501. If you think you may be the victim of fraud or you unknowingly provided personal or financial information, contact all of the following:

  • local police service
  • your financial institution
  • credit reporting agencies

You should contact the CRA if you:

  • think your CRA user ID or the password you use in personal dealings with the CRA has been compromised
  • want to disable online access to your information on the CRA’s sign-in services
  • want to re-activate online access to your information after it’s been disabled

Stay connected

To receive updates on what is new at the Canada Revenue Agency (CRA), you can:

published: 04/30/2021

The Canada Revenue Agency (CRA) is warning Canadian taxpayers and their representatives about creating or ignoring fake documents, fake loans, and fake business agreements in order to get around the Income Tax Act or the Excise Tax Act. These actions, even if passive, may qualify as culpable conduct and may be subject to civil third-party penalties in conjunction with any criminal charges that may apply.

Culpable conduct

Culpable conduct in tax matters is the type of conduct which courts have applied a civil penalty in the past. More precisely, culpable conduct was defined by the Canadian court as conduct, whether an act or a failure to act, that is:

  • tantamount to intentional conduct,
  • or that shows an indifference as to whether the Act is complied with,
  • or that shows a wilful, reckless or wanton disregard of the law.

In essence, intentionally misrepresenting tax liability, overlooking or being wilfully blind when examining a client’s income tax affairs, even if in previous years matters were handled by a different tax preparer, could result in third-party penalties.

The law

Under the Income Tax Act, there are two third-party penalties: the planner penalty and the preparer penalty. Although they address different issues about involvement in tax schemes, both penalties address culpable conduct. The planner and preparer penalties can carry substantial financial consequences for a tax preparer or third-party associated with a false or misleading statement.

Planner penalty

The planner penalty applies to those who create false statements, help another person make, or cause someone to make, a false statement about their taxes that they know is false or misleading or would be reasonably expected to know is false or misleading if they had not acted with culpable conduct.

Preparer penalty

The preparer penalty applies to those who make or assent to making a false statement for another person that they know is false or misleading, or would reasonably be expected to know is false or misleading if they had not acted with culpable conduct.

Your actions may have serious consequences

If you have been involved in making fake or exaggerated documents to avoid or evade tax, you may face serious consequences, including penalties, court fines, and even jail time. The same goes for people who promote tax schemes, even if they are not involved in the scheme planning.

People who avoid or evade tax take resources away from the social programs that benefit Canadians.

What can you do?

For important tax matters, the CRA encourages all Canadians to seek an independent second opinion from a reputable tax professional.

If you suspect someone of promoting or participating in an abusive tax scheme, you can report it online at canada.ca/taxes-leads or by calling the Informant Leads Centre at 1-866-809-6841. The CRA will take steps to protect your identity. Also, you may give information anonymously.

The CRA continues to encourage taxpayers to come forward and correct their tax affairs through the Voluntary Disclosures Program: canada.ca/taxes-voluntary-disclosures.

For more information on tax schemes, go to canada.ca/tax-schemes.

Contacts

Media Relations
Canada Revenue Agency
613-948-8366
cra-arc.media@cra-arc.gc.ca

Stay connected

To receive updates on what is new at the Canada Revenue Agency (CRA), you can:

published: 8/1/2020

The Dedicated Telephone Service (DTS) is now a permanent CRA program available nationally.

By using the service, income tax service providers can connect with experienced CRA officers from the Income Tax Rulings Directorate who will be able to help them interpret the provisions of the Income Tax Act. After determining the nature of the tax issue, these officers will carefully consider the question and then send the service provider helpful information and guidance.

While these officers do not have access to individual taxpayers’ accounts, the DTS is a valuable technical resource to help service providers resolve their interpretive tax issues.

To register, small- and medium-sized income tax service providers – those with 50 or fewer partners – are invited to fill out and send the completed DTS registration form to dts-str@cra-arc.gc.ca. You can also visit the DTS web page for further information about the service, including eligibility criteria and more details on how the service can help.