CRA Taxpayer Bill of Rights: Your Rights When Dealing With the CRA

 

 

Canadian taxpayers have important rights when dealing with the Canada Revenue Agency (CRA).

These rights arise from several sources, including the Income Tax Act, Excise Tax Act, Canadian Charter of Rights and Freedoms, privacy legislation, official-languages legislation, and the CRA’s Taxpayer Bill of Rights.

The Taxpayer Bill of Rights sets out 16 rights describing the treatment taxpayers are entitled to receive when dealing with the CRA.

Understanding these rights can be particularly important during a CRA audit, objection, collection matter, taxpayer-relief request, or other tax dispute.

What Is the CRA Taxpayer Bill of Rights?

The Taxpayer Bill of Rights is a CRA framework setting out 16 rights relating to the administration of Canada’s tax and benefit system.

It was introduced in 2007 as part of an effort to improve CRA accountability, fairness, transparency, and service to taxpayers.

The rights address issues such as:

• Paying only the amount required by law;
• Privacy and confidentiality;
• Review and appeal rights;
• Fair and professional treatment;
• Clear and timely information;
• Collection of disputed income-tax amounts;
• Service complaints;
• Penalty and interest relief;
• Representation; and
• Protection from reprisal for complaints or reviews.

For the CRA’s current official description, see the Taxpayer Bill of Rights.

Are the Taxpayer Bill of Rights Legally Enforceable?

The 16 rights do not all operate in exactly the same way.

Some of the rights reflect protections created by legislation and can be enforced through statutory objection, appeal, privacy, official-languages, or court procedures.

Other rights are primarily service-related commitments concerning how the CRA should communicate with and treat taxpayers.

For example, the right to a formal review and subsequent appeal is supported by statutory objection and appeal provisions in Canadian tax legislation.

By contrast, complaints concerning courtesy, timeliness, clarity of information, or other service issues may be dealt with through the CRA’s Service Feedback Program and, in appropriate cases, the Office of the Taxpayers’ Ombudsperson.

What Are the 16 Taxpayer Rights?

The CRA’s Taxpayer Bill of Rights currently contains the following 16 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, unless otherwise provided by law, 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 the CRA’s findings.
10. You have the right to have the costs of compliance taken into account when tax legislation is administered.
11. You have the right to expect the CRA 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 the CRA to publish its service standards and report annually.
14. You have the right to expect the CRA 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.
16. You have the right to lodge a service complaint and request a formal review without fear of reprisal.

Right 1: Pay No More and No Less Than Required by Law

Taxpayers have the right to receive benefits, credits, refunds, and other entitlements provided by law and to pay no more or less tax than Canadian legislation requires.

If the CRA issues an assessment or reassessment that a taxpayer believes is incorrect, formal dispute rights may be available.

For information about challenging an assessment, see our Notice of Objection guide.

Right 2: Service in English or French

Taxpayers have the right to receive CRA services in either of Canada’s official languages, English or French, in accordance with applicable official-languages requirements.

Right 3: Privacy and Confidentiality

The CRA handles extensive financial and personal information and is required to protect taxpayer information in accordance with applicable tax and privacy legislation.

Taxpayer information generally cannot be disclosed except where authorized by law.

This right does not mean that taxpayer information can never be communicated to another person. Tax legislation contains circumstances in which disclosure is expressly permitted, including certain enforcement and administration situations.

Right 4: Formal Review and Subsequent Appeal

Taxpayers may have statutory rights to challenge CRA decisions.

For example, a taxpayer who disagrees with an income-tax or GST/HST assessment may generally have a right to file a Notice of Objection.

If the matter remains unresolved after the CRA objection process, appeal rights to the Tax Court of Canada may be available.

For legal representation, visit our CRA tax objection lawyers page.

Right 5: Professional, Courteous and Fair Treatment

Taxpayers have the right to expect CRA employees to treat them professionally, courteously, and fairly.

This is one of the service rights overseen by the Office of the Taxpayers’ Ombudsperson.

Examples of potential service concerns can include inappropriate conduct, refusal to provide reasonable explanations, or other treatment inconsistent with CRA service standards.

Right 6: Complete, Accurate, Clear and Timely Information

The CRA should provide taxpayers with information that is complete, accurate, understandable, and timely.

This can be particularly important where taxpayers need to understand:

• Why an assessment was issued;
• What records are being requested;
• What deadlines apply;
• What review rights are available;
• What amounts are owing; and
• What steps the CRA intends to take.

Right 7: Not to Pay Certain Disputed Income-Tax Amounts Before an Impartial Review

Unless otherwise provided by law, taxpayers generally have the right not to pay disputed income-tax amounts before receiving an impartial review.

For many income-tax disputes, collection restrictions apply after a valid Notice of Objection or during a Tax Court appeal.

However, important exceptions exist.

For example, collection may continue in certain circumstances involving:

• GST/HST;
• Payroll source deductions;
• Certain large-corporation amounts;
• Jeopardy orders; and
• Other statutory exceptions.

Interest may also continue to accrue while an amount is disputed.

For more information about urgent collection exceptions, see our CRA Jeopardy Orders guide.

Right 8: Consistent Application of the Law

Taxpayers have the right to expect the CRA to apply tax legislation consistently.

This does not necessarily mean every taxpayer will receive the same result, because different facts can produce different tax consequences.

However, taxpayers should expect the CRA to apply the same legal principles consistently to comparable circumstances.

Right 9: Make a CRA Service Complaint

Taxpayers can complain about the quality of service they receive from the CRA.

Service complaints are different from objections to tax assessments.

A service complaint may concern matters such as:

• Unreasonable service delays;
• Poor communication;
• Unprofessional treatment;
• Failure to provide explanations;
• Difficulty obtaining information; or
• Other service-related concerns.

The CRA’s Service Feedback Program is generally the first formal complaint process for CRA service issues.

Right 10: Have Compliance Costs Taken Into Account

Taxpayers have the right to expect the CRA to consider the costs and administrative burden of complying with tax legislation.

This does not eliminate a legal obligation to provide information or records, but it reflects the CRA’s commitment to administer the system in a practical and efficient manner where possible.

Right 11: CRA Accountability

The CRA is expected to be accountable for its decisions and actions.

When making decisions affecting a taxpayer’s tax or benefit affairs, the CRA should explain its decision and provide information about applicable rights and obligations.

Right 12: Relief From Penalties and Interest

Canadian tax legislation gives the CRA discretion to cancel or waive certain penalties and interest in qualifying circumstances.

Potential grounds may include:

• Extraordinary circumstances;
• Actions or delays by the CRA;
• Inability to pay or financial hardship in appropriate circumstances; and
• Other circumstances recognized under the taxpayer-relief provisions.

Taxpayer relief generally does not permit the CRA to cancel the underlying principal tax simply because payment is difficult.

For more information, see our CRA Form RC4288 Taxpayer Relief guide.

Right 13: Published CRA Service Standards

Taxpayers have the right to expect the CRA to publish service standards and report on its performance against those standards.

Service standards can provide useful benchmarks when dealing with lengthy processing or administrative delays.

Right 14: Warnings About Questionable Tax Schemes

Taxpayers have the right to expect the CRA to provide timely warnings about questionable tax schemes.

The CRA regularly publishes warnings about arrangements it considers abusive, misleading, or potentially non-compliant.

Taxpayers considering sophisticated tax planning should obtain professional advice about both the technical tax provisions and applicable anti-avoidance rules.

For more information, see our GAAR in Canada guide.

Right 15: Representation by a Person of Your Choice

Taxpayers have the right to be represented by a person of their choice when dealing with the CRA.

This may include a lawyer, accountant, tax professional, or another authorized representative.

CRA authorization requirements must still be completed before the CRA can discuss confidential taxpayer information with the representative.

Right 16: No Fear of Reprisal for Complaints or Formal Reviews

Taxpayers have the right to make a service complaint or request a formal review without fear that the CRA will retaliate against them for exercising those rights.

The CRA states that taxpayers should continue to receive impartial treatment and the benefits, credits, refunds, and other entitlements required by law.

What Is the Office of the Taxpayers’ Ombudsperson?

The Office of the Taxpayers’ Ombudsperson reviews unresolved complaints about CRA service and examines systemic service issues affecting taxpayers.

The Office currently oversees eight service-related rights in the Taxpayer Bill of Rights:

• Right 5 — professional, courteous and fair treatment;
• Right 6 — complete, accurate, clear and timely information;
• Right 9 — service complaints and explanations;
• Right 10 — compliance costs;
• Right 11 — CRA accountability;
• Right 13 — service standards;
• Right 14 — warnings about questionable tax schemes; and
• Right 15 — representation.

For current information about the Office, visit the Office of the Taxpayers’ Ombudsperson.

When Can You Complain to the Taxpayers’ Ombudsperson?

The Ombudsperson focuses on CRA service issues rather than determining whether a tax assessment is legally correct.

Generally, taxpayers should first attempt to resolve a service complaint with the CRA, including through the CRA’s Service Feedback Program.

If the service issue remains unresolved or the taxpayer is dissatisfied with how the CRA handled it, a complaint to the Office of the Taxpayers’ Ombudsperson may be available.

In urgent cases involving serious hardship, different complaint-handling procedures may apply.

Can the Taxpayers’ Ombudsperson Cancel a CRA Assessment?

No.

The Ombudsperson’s role concerns CRA service and treatment. It is not a substitute for the statutory objection and appeal process.

If the dispute is about whether an assessment or reassessment is correct, the appropriate process will generally involve a Notice of Objection and potentially an appeal to the Tax Court of Canada.

What Is the Difference Between a Service Complaint and a Tax Objection?

A service complaint concerns how the CRA treated or served the taxpayer.

A Notice of Objection concerns whether the CRA’s assessment or reassessment is legally or factually correct.

For example:

• An unreasonable delay or rude treatment may be a service issue;
• A disagreement about unreported income may require a Notice of Objection;
• A complaint about inadequate explanations may involve service rights; and
• A disagreement about penalties included in a reassessment may involve formal objection rights.

In some cases, taxpayers may have both a service complaint and a substantive tax dispute at the same time.

Can You Challenge a CRA Decision in Court?

Potentially, depending on the type of decision.

Assessment disputes generally proceed through the CRA objection process and the Tax Court of Canada.

Certain administrative or discretionary CRA decisions may instead be subject to judicial review in the Federal Court.

For information about Federal Court proceedings, see our Judicial Review of CRA Decisions guide.

What Should You Do If You Believe CRA Has Violated Your Rights?

The appropriate response depends on the right and the underlying issue.

Possible steps may include:

• Contacting the CRA employee handling the file;
• Requesting to speak with a supervisor;
• Submitting CRA Service Feedback;
• Complaining to the Office of the Taxpayers’ Ombudsperson;
• Filing a Notice of Objection;
• Appealing to the Tax Court of Canada;
• Seeking taxpayer relief;
• Applying for judicial review in Federal Court; or
• Using another statutory complaint or review mechanism.

The correct procedure depends on whether the issue involves service, an assessment, collection action, discretionary relief, privacy, procedural fairness, or another legal issue.

Frequently Asked Questions About the Taxpayer Bill of Rights

How many rights are in the CRA Taxpayer Bill of Rights?

There are 16 rights in the current Taxpayer Bill of Rights.

Can I refuse to pay tax just because I disagree with the CRA?

No. Collection restrictions depend on the type of tax and the applicable legislation. Many disputed income-tax amounts are protected from collection during certain objection or appeal periods, but important exceptions apply.

Can I have a lawyer deal with the CRA for me?

Yes. Taxpayers have the right to be represented by a person of their choice, subject to completing the CRA’s applicable authorization requirements.

Can I complain if a CRA employee treats me unfairly?

Yes. CRA service complaints can be made through the Service Feedback Program, and unresolved qualifying complaints may be reviewed by the Office of the Taxpayers’ Ombudsperson.

Can the Ombudsperson change my tax assessment?

No. Assessment disputes generally must be addressed through the objection and Tax Court appeal process.

Do I have a right to penalty and interest relief?

You have the right to request relief under the applicable taxpayer-relief provisions. Whether relief is ultimately granted remains a discretionary decision based on the legislation and circumstances.

Does the Taxpayer Bill of Rights replace the Income Tax Act?

No. The Taxpayer Bill of Rights describes taxpayer rights and service expectations, but statutory tax obligations and formal appeal rights continue to be governed by legislation such as the Income Tax Act and Excise Tax Act.

Speak With a Canadian Tax Lawyer About a CRA Dispute

Understanding which taxpayer right applies is only part of resolving a CRA dispute. Different problems may require a service complaint, Notice of Objection, taxpayer-relief request, Tax Court appeal, or Federal Court judicial review.

KR Law Firm represents individuals and businesses in CRA audits, objections, collections matters, taxpayer-relief disputes, and tax litigation.

Book a Free Consultation with one of our tax lawyers to discuss a CRA matter.

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By Kaveh Rezaei – Principal Lawyer, KR Law Firm

Disclaimer: This article provides general information only and does not constitute legal advice. Taxpayer rights and remedies depend on the type of CRA decision, applicable legislation, and circumstances of the particular matter.