WELCOME

This site aims to provide information for taxpayers and to share stories and tips for dealing with the Canada Revenue Agency.
I hope you will find some of the issues raised interesting and please feel free to provide comments or email me your stories!

Monday, September 28, 2009

Paying Amounts in Dispute

There are very few areas where you will find common sense, logic and justice as subverted as you will when you deal with the tax system in our country.

Today I had to explain to a client that although he had valid grounds to dispute his re-assessment, there was no law that prevented collection of the taxes arising from the re-assessment before his appeal and/or objection were complete.

“But I don’t owe the money, they made a mistake, why should I have to pay?”

I have no other answer than – that is what the law says. Of course I explain that if he is successful in his appeal then any excess amounts paid will be refunded but that is little comfort to someone facing an $80,000 bill. It is incredibly hard to watch people time and time again look confused and crushed that the law allows these injustices to happen. People have no respect for laws that are unfair and the more you learn about the tax system, the less you respect it.

Paying taxes while an objection is being processed only applies in certain situations but for those where it does, they face the prospect of potentially being bankrupted before their appeal is even heard. All I can do is warn the taxpayer and hope we get a nice collection agent who agrees not to exercise their power to collect…

Friday, September 18, 2009

The Taxpayers' Ombudsman

Today I met with Mr. Paul Dubé, the Taxpayers’ Ombudsman. For anyone who thinks the office of the Taxpayers’ Ombudsman is a joke, think again. This man has a vision and with it the belief and determination to make real changes. He knows that there are significant problems with how the Canada Revenue Agency (CRA) treats taxpayers and he is genuinely there to help. It was an absolute pleasure to see he was most definitely not another “ineffective politician” type.

The Taxpayers’ Ombudsman office was created in 2007 and is intended to address service issues and complaints that arise from dealing with the Canada Revenue Agency. While the idea of “service” from the tax collector may seem a little odd, Mr. Dubé was quick to highlight that what his office does goes far beyond dealing with complaints about rude behaviour from CRA agents. He is there to fight for your rights as taxpayers (see my post below).

I really think Mr. Dubé and his team can significantly help to improve the way the CRA operate and we all need to get the word out about what the Taxpayers’ Ombudsman is doing. If you think you have a complaint or want more information, the staff are all very friendly and it’s all free! Call 1-866-586-3839 or go to www.taxpayersrights.gc.ca

Thursday, September 17, 2009

Did you know you have Taxpayer Rights?

It surprises some people to learn that there is a Taxpayer Bill of Rights:

1. You have the right to receive entitlements and to pay no more and no less than what is required by law.
2. You have the right to service in both official languages.
3. You have the right to privacy and confidentiality.
4. You have the right to a formal review and a subsequent appeal.
5. You have the right to be treated professionally, courteously, and fairly.
6. You have the right to complete, accurate, clear, and timely information.
7. You have the right, as an individual, not to pay income tax amounts in dispute before you have had an impartial review.
8. You have the right to have the law applied consistently.
9. You have the right to lodge a service complaint and to be provided with an explanation of our findings.
10. You have the right to have the costs of compliance taken into account when administering tax legislation.
11. You have the right to expect us to be accountable.
12. You have the right to relief from penalties and interest under tax legislation because of extraordinary circumstances.
13. You have the right to expect us to publish our service standards and report annually.
14. You have the right to expect us to warn you about questionable tax schemes in a timely manner.
15. You have the right to be represented by a person of your choice.

If your rights haven’t been respected or you do not feel the service you received from the CRA is in accordance with these rights, you can make a complaint. Think of it as a service contract as you would with any other organization that provides a service to the public. Contrary to how it may feel sometimes, CRA agents do have boundaries and taxpayers need to know about them. If the public don’t enforce their rights they won’t be any good to us! You can read more about your rights at http://www.cra-arc.gc.ca/gncy/frnss/tbrbll-eng.html or give me a call if you need help to make a complaint.