Taxpayer Bill of Rights Canada: Rights and Protections
The Taxpayer Bill of Rights is an essential framework designed to protect Canadian taxpayers when dealing with the Canada Revenue Agency (CRA). Understanding these rights can help individuals and businesses navigate their interactions with the CRA more confidently, especially during audits, assessments, compliance or collections.
What is the Taxpayer Bill of Rights?
The Taxpayer Bill of Rights in Canada is a set of 16 fundamental rights that outline the treatment taxpayers are entitled to when dealing with the CRA. It ensures fair and transparent interactions between taxpayers to balance the CRA’s authority with taxpayers’ rights, ensuring that tax administration is conducted fairly and with respect.
The 16 Rights Under the Taxpayer Bill of Rights
- The Right to Receive Entitlements and to Pay No More and No Less than What is Required by Law
This right ensures that taxpayers are only required to pay the correct amount of tax, no more and no less. The CRA must correctly assess your tax liability based on the appropriate legislation.
- The Right to Service in Both Official Languages
As per the Official Languages Act, Canadians have the right to communicate with and receive services from the federal government, which includes the CRA, in both English and French. This includes all written and oral communications, as well as the forms and notices in both languages.
- The Right to Privacy and Confidentiality
The CRA must protect your personal and financial information from unauthorized access. All communications and records are kept confidential unless disclosure is authorized by law. If you believe that the confidentiality of your information has been compromised, contact the CRA immediately. That being said, taxpayers are also entitled to receive certain internal documents and CRA’s working papers via Access to Information and Privacy Directorate requests.
- The Right to a Formal Review and a Fair Appeal
If you disagree with a CRA decision, you have the right to request a formal review or file an appeal. This right ensures that disputes are handled impartially, whether related to the merit of the assessments or challenging the legality or fairness of the CRA’s decision.
- The Right to be Treated Professionally, Courteously, and Fairly
CRA employees are required to treat taxpayers with courtesy and professionalism. This right ensures that all interactions are respectful and conducted without discrimination. Taxpayers have the right to file a service complaint if they believe this standard has not been met by the CRA.
- The Right to Complete, Accurate, Clear, and Timely Information
The CRA must provide information that is easy to understand and accurate. Taxpayers should be informed of any changes to tax laws or policies that affect them.
- The Right, Unless Otherwise Provided by Law, Not to Pay Income Tax Amounts in Dispute Before You Have Had an Impartial Review
You do not have to pay the disputed amount of tax before your objection or appeal is resolved, unless specific legislation states otherwise. This right prevents undue financial strain during disputes. Interest charges will continue to accumulate during this period.
- The Right to Have the Law Applied Consistently
The CRA must apply tax laws consistently across all cases, ensuring that similar situations receive similar treatment.
- The Right to Lodge a Service Complaint and to be Provided with an Explanation of the CRA Findings
If you are dissatisfied with the service or conduct of a CRA employee, you can lodge a service complaint by completing Form RC193, Service Feedback. The CRA must investigate and provide a clear explanation of their findings.
- The Right to Have the Costs of Compliance Considered When Administering Tax Legislation
The CRA must consider the administrative burden on taxpayers, particularly small businesses and individuals, to comply with the tax and benefit legislation administered.
- The Right to Expect the CRA to be Accountable
The CRA must provide reasons for its decisions and be transparent about its processes. This right ensures accountability at all levels of the agency.
- The Right to Relief from Penalties and Interest Under Taxpayer Relief Provisions
If circumstances beyond your control (e.g., illness, natural disaster, actions of the CRA) prevent timely tax compliance, you may apply for relief from penalties and interest.
- The Right to Expect the CRA to Publish Service Standards and Report Annually
The CRA must regularly publish its service standards and report on its performance to maintain transparency.
- The Right to Expect the CRA to Warn You About Questionable Tax Schemes in a Timely Manner
If CRA identifies questionable tax schemes that are under scrutiny, they are responsible for issuing warnings and informing taxpayers.
- The Right to be Represented by a Person of Your Choice
You may authorize a representative (like a tax lawyer or accountant) to handle your tax matters with the CRA. However, you are still legally responsible for your reporting.
- The Right to Lodge a Service Complaint and Request a Formal Review without Fear of Reprisal
Raising concerns or complaints about the CRA should not result in any negative consequences or retaliatory actions.
How to Ensure Your Rights Are Upheld
Keep Detailed Records
Maintain accurate documentation, including correspondence with the CRA, to ensure you have evidence if your rights are violated. Whenever possible, ensure you receive correspondence in writing that is either mailed to your address or easily accessible on the online portal.
Use Formal Channels for Disputes
Ensure any submissions or communication with the CRA are shared through the appropriate channel, whether it is mail, fax, or online submission. Keep in mind that the CRA is obligated to consider the cost of compliance as well as respect your right to confidentiality. If you believe the cost of compliance is too high or your confidentiality is at risk, it must be communicated with the CRA Agent.
What to Do If Your Rights Are Violated
If you believe that the CRA has violated your rights under the Taxpayer Bill of Rights, you can:
- File a Service Complaint through the CRA website or by mail.
- Request a formal review if your complaint is not resolved to your satisfaction.
- Escalate the issue to the Taxpayers’ Ombudsperson, an independent office that ensures the CRA is held accountable.
Consult a Tax Lawyer
If you are facing a complex dispute or feel your rights are being ignored, consult with a tax lawyer to get professional representation. A lawyer can help you navigate the process, assist with compliance, file objections, and appeal to CRA decisions.
At Rosen & Associates Tax Law, we are dedicated to protecting your rights as a taxpayer. If you feel your rights have been violated or you are facing issues with the CRA, contact us for professional support.
Schedule a free consultation to discuss your situation and learn more about your rights under the Taxpayer Bill of Rights.
***Disclaimer: This article provides information of a general nature only. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in this article. If you have specific legal questions, you should consult a lawyer.
Elias Zafiridis