Taxpayer Bill of Rights

Powers of the CRA

The Minister of National Revenue (“Minister“) is responsible for administering and enforcing Canadian tax laws. In practice, however, the Canada Revenue Agency (“CRA“) performs nearly all of the Minister’s functions in administering the collection of taxes and enforcing Canadian tax laws. The CRA has been given broad powers to administer the Canadian tax system. Due to the broad powers given to the CRA, there are significant power imbalances whenever taxpayers deal with the CRA. For this reason, it is crucial to know the rights you have as a taxpayer when dealing with the CRA. 

Taxpayer Rights

Many of the rights provided to taxpayers come from statutes such as the Canadian Charter of Rights and Freedoms, the Income Tax Act and the Excise Tax Act. Other taxpayers’ rights come from the Taxpayer Bill of Rights.

Creation of the Taxpayer Bill of Rights

The Taxpayer Bill of Rights was created in 2007. The Bill’s purpose was to protect the tax system’s integrity and protect taxpayers from unreasonable and unfair treatment by the CRA. The purpose behind its creation was to achieve more accountability and transparency on the part of the CRA, which would, in turn, ensure greater compliance of tax laws by taxpayers. Essentially, the rights set out in the Taxpayer Bill of Rights are intended to protect taxpayers and affirm the CRA’s responsibility to serve the public with professionalism, respect, integrity, and collaboration.

Office of the Taxpayers’ Ombudsman

To assist with enforcing these rights, the Office of the Taxpayers’ Ombudsman was established in 2008. The Office of the Taxpayers’ Ombudsman is independent of the CRA and conducts independent reviews of service-related complaints and systemic issues. The Office of the Taxpayers’ Ombudsman cannot review matters before the courts or deal with complaints relating to tax policy. 

Taxpayer Bill Of Rights

The Taxpayer Bill of Rights is composed of 16 rights that are to be guaranteed to each taxpayer when dealing with the CRA. The 16 rights are as follows: 

1. The right to receive entitlements (credits and benefits) and to pay no more and no less than what is required by law
2. The right to receive service in both official languages (English and French) 
3.  The right to privacy and confidentiality whenever the CRA handles your information (This right does not include a situation where the CRA issues a requirement to pay to a taxpayer’s bank or employer in the course of collecting a tax debt)
4. The right to a formal review and a subsequent appeal (This means that as a taxpayer, you have the right to dispute or appeal anything that you disagree with)
5. The right to be treated professionally, courteously, and fairly in your dealings with the CRA
6. The right to complete, accurate, clear, and timely information (This means you have the right to have things explained to you clearly and accurately and within a reasonable amount of time)
7. The right, unless otherwise provided by law, not to pay income tax amounts in dispute before you have had an impartial review (This means that you have the right not to be required to pay any amounts assessed by the CRA if you have asked for a review or filed an objection)
8. The right to have the law applied consistently to your case
9. The right to lodge a service complaint and to be provided with an explanation of the findings regarding the complaint (This means that you have the right to complain if you feel that the CRA is mishandling your matter or engaging in inappropriate actions. You also have the right to be informed of the findings with regards to your complaint)
10. The right to have the costs of compliance taken into account when administering tax legislation
11. The right to expect the CRA to be accountable and responsible 
12. The right to relief from penalties and interest under tax legislation due to extraordinary circumstances
13. The right to expect the CRA to publish service standards and reports annually
14. The right to expect the CRA to warn you about questionable tax schemes in a timely manner
15. The right to be represented by a person of your choice
16. The right to lodge a service complaint and request a formal review without the fear of reprisal by the CRA

Professional Legal Help With the CRA

Theoretically, the rights set out in the Taxpayer Bill of Rights are supposed to be guaranteed to each taxpayer in the course of their dealings with the CRA. In practice, however, these rights are inconsistently applied and not always respected by the CRA. If you have received correspondence from the CRA regarding an assessment, reassessment or audit, you must understand your rights and obligations as a Canadian taxpayer. Our firm can thoroughly assess your situation, help you understand your rights, and communicate with the CRA on your behalf in resolving your tax issue. 

Got questions? Contact us today and book your free consultation with one of our lawyers.

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By Kaveh Rezaei – Attorney at KR Law Firm

**Disclaimer 

This article contains information of a general nature only and does not constitute legal advice. All legal matters have their own specific and unique facts and will differ from each other. If you have a specific legal question, it may be appropriate to seek the services of a lawyer.