KNOW YOUR TAXPAYER RIGHTS
The CRA has issued a news release advising all taxpayers that there are opportunities for recourse available if they aren’t in agreement wiith assessment notices received from the Agency.
The Canadian tax system is based on self assessment and voluntary compliance. It is also a system which strives for fairness and equity. In fact, taxpayer’s rights are enshrined in a “Declaration of Taxpayer Rights”, which includes the following basic rights:
- Fair treatment: application of the law fairly and impartially.
- Courtesy and consideration: the right to be treated with courtesy, respect, and consideration.
- Privacy and confidentiality: the right to expect that personal and financial information is protected against unauthorized use or disclosure.
- Bilingual service: the right to be served in the official language of your choice at designated bilingual offices.
- Information: the right to get complete, accurate, and clear information about your rights, entitlements, and obligations.
- Entitlements: the right to every benefit allowed under the law.
- Formal review: the right to a formal review of a taxpayer’s file and then the right to appeal to the courts if taxes in dispute cannot be resolved.
Taxpayer Protection Provisions are also provided to Canadian taxpayers through the Income Tax Act. It features a number of provisions designed to protect the taxpayer’s rights, as described below:
- Taxpayer’s Right to Appeal.
- Taxpayer’s Right to Fairness and Leniency.
- Taxpayer’s Right to Privacy: An employee or official of CRA may only provide information about the taxpayer to that taxpayer or to another person provided the taxpayer has given written consent. This is done on Form T1013 Authorizing or Cancelling a Representative. Under S. 241(1), no CRA employee may communicate taxpayer information knowingly to any other person or allow another to have access to taxpayer information. Should this happen, S. 239(2.2) provides for a fine not exceeding $5000 or imprisonment for a term not exceeding 12 months or both.
Taxpayers can file an objection to most assessments and reassessments issued by the CRA, and there are various avenues for completing the objection. They can use the online My Account service, or contact their local tax services office via phone or mail. Appeals officers who were not involved in the original decision will conduct a review of the individual’s tax return. In a majority of cases taxpayers don’t have to pay outstanding income tax amounts that are in dispute until the formal review is completed by CRA. To resolve a dispute with the CRA or for more information on objections and appeal rights go to www.cra.gc.ca/resolvingdisputes.
