The CRA is resuming a full range of audit work and prioritizing actions that are beneficial to the taxpayer or where taxpayers have indicated there is an urgency to advancing their audit. They will also be prioritizing actions focusing on:
- Higher dollar audits,
- Audits close to completion, and
- Audits with strategic importance to:
- the Government of Canada,
- provinces, and
As a result of COVID-19, new methods of taxpayer and registrant interaction will be required, and the CRA is working to develop procedures and protocols to adapt these to the current reality. Some key changes will relate to offering additional time and upfront consultation on requests to provide the CRA with information and access.
Requirements for Information (RFIs) issued prior to March 16 and due after that date will be reviewed and taxpayers and third parties, including financial institutions, will be contacted where the CRA continues to require the information in the RFI.
- Collections activities on new debts will be suspended until further notice, however, flexible payment arrangements will be available.
- If you can’t pay your taxes, child and family benefit over-payments, Canada Student Loans, or other government program over-payments in full, payment arrangements are available.
- Collections staff will address pre-existing situations on a case-by-case basis to prevent financial hardship.
- Debt Management Call Centre service is not currently available.
Objections & Appeals
Objections related to Canadians’ entitlement to benefits and credits will continue to be delivered during COVID-19. Objections related to other tax matters filed by individuals and businesses are currently being held in abeyance. No collection action will be taken with respect to these accounts at this time.
For objections that are due between March 18, 2020, and June 30, 2020, the deadline is being extended to June 30, 2020.
Taxpayers who are unable to file a return or make a payment by the tax-filing and payment deadlines as a result of COVID-19:
- May request the cancellation of penalty and interest charged to their account, and
- Penalties and interest will not be charged if the new deadlines that the government has announced to tax-filing and payments are met.
Once the business operations resume, the Taxpayer Relief Program will review requests related to COVID-19 on a priority basis.
T1 Validation & More
Clients may have been contacted to provide supporting information in relation to amounts claimed on their individual tax and benefit returns on some review and verification activities that had been initiated prior to the COVID-19 pandemic. If you have received any CRA correspondence no action is required from them at this time.
It is important to note that, although reviews have been postponed, it does not prevent future actions or reviews from being completed. Taxpayers will need to keep their supporting documents, in case they are selected for review in the future.