ELECTRONIC COMMUNICATIONS FROM THE CRA
Few would disagree with the fact that computers and the internet have greatly enhanced how businesses operate. They have provided businesses with the ability to transfer information freely, and to have instant access to knowledge. In spite of this, up until now, the Canada Revenue Agency (CRA) has not corresponded with taxpayers electronically and has continued to rely mostly on the ordinary mail system.
The 2010 federal budget proposed significant changes on this front that will allow the CRA to issue electronic notices, such as notices of assessment that can currently only be sent by ordinary mail. (Notices that are specifically required to be served personally or by registered or certified mail will not be eligible to be transmitted electronically.)
The proposed measures will provide the CRA with the ability to issue electronic notices if authorized by a taxpayer, which will be made available on the CRA’s existing web site (i.e. My Account for individuals and My Business Account for corporate tax). The CRA states that they will inform taxpayers that provide such authorization that a new electronic document is available in their secure online account by sending the taxpayer an email to that effect. The CRA states that they intend to provide this service in respect of the following:
- Notices of assessment and reassessment of tax under Part I of the Income Tax Act,
- Notices of determination and redetermination in respect of the GST/HST credit, and
- The Canada Child Tax Benefit.
Although legislation has not been passed to implement these changes, you should start to consider how this will impact your dealings with the CRA. To begin with, you should continue to notify your BDO advisor if you receive any correspondence from the CRA that may require a response or follow-up. This would include any notices of assessment that you receive. If you receive a high volume of email and a CRA email could be missed, you should probably think twice about using electronic communications. Also, you will need to remember that you must notify the CRA if there are any changes, such as the retirement of a staff member that handles CRA correspondence.
As well, you should be mindful of the various fraudulent communications that are currently in circulation. See our article titled “Protect Yourself Against Fraud and Identity Theft” in this edition of the Tax Factor. It is most important that you ensure that the communication you receive is authentic and that it was actually issued by the CRA. An authentic email from the CRA will simply notify you that new information is available and waiting for you in My Account or My Business Account.
Contact your BDO advisor if you receive any correspondence from the CRA that requires follow-up or that you are unsure about.
Next section: Protect Yourself Against Fraud and Identity Theft
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