CRA Phone Scam: Advisors Can Help Protect Vulnerable Canadians

Beth Graddon

It can be financially devastating and it’s seniors and the most vulnerable - those who don’t understand the taxpayer relationship with the CRA – that are the most frequent victims of a CRA phone scam that is extracting thousands of dollars from unsuspecting people. It’s important for professionals to share guidelines with clients to help all family members recognize whether or not they’re legitimately being contacted by the CRA.

More than 600,000 Canadians have been targeted by a scam referred to as the “CRA phone scam”. Though only a smaller percentage have been victims of the scam - in which a perpetrator claims to be from the CRA and indicates that a taxpayer owes money and must pay immediately or face arrest or salary garnishment.

The first and most important step is to ensure that Canadians know that they can phone the CRA if they’re not sure if a call they’ve received is legitimate. For individuals, the phone number is 1-800-959-8281 and 1-800-959-5525 for businesses. These phone numbers can also be used to have additional security measures placed on a CRA account if any suspicious activity is suspected.

However, it’s identifying whether a call is suspicious that’s more challenging for some taxpayers. So, sharing information on when, how and what the CRA will not do while communicating is essential.

These are the guidelines published by the CRA:

BY PHONE

The CRA may:

• Verify your identity by asking for personal information such as your full name, date of birth, address and account, or social insurance number
• Ask for details about your account, in the case of a business enquiry
• Call you to begin an audit process

The CRA will never:

• Ask for information about your passport, health card, or driver's license
• Demand immediate payment by Interac e-transfer, bitcoin, prepaid credit cards or gift cards from retailers such as iTunes, Amazon, or others
• Use aggressive language or threaten you with arrest or sending the police
• Leave voicemails that are threatening or give personal or financial information

BY EMAIL

The CRA may:

• Notify you by email when a new message or a document, such as a notice of assessment or reassessment, is available for you to view in secure CRA portals such as My Account, My Business Account, or Represent a Client
• Email you a link to a CRA webpage, form, or publication that you ask for during a telephone call or a meeting with an agent (this is the only case where the CRA will send an email containing links)

The CRA will never

• Give or ask for personal or financial information by email and ask you to click on a link
• Email you a link asking you to fill in an online form with personal or financial details
• Send you an email with a link to your refund
• Demand immediate payment by Interac e-transfer, bitcoin, prepaid credit cards or gift cards from retailers such as iTunes, Amazon, or others
• Threaten you with arrest or a prison sentence

BY MAIL

The CRA may:

• Ask for financial information such as the name of your bank and its location
• Send you a notice of assessment or reassessment
• Ask you to pay an amount you owe through any of the CRA's payment options
• Take legal action to recover the money you owe, if you refuse to pay your debt
• Write to you to begin an audit process

The CRA will never:

• Set up a meeting with you in a public place to take a payment
• Demand immediate payment by Interac e-transfer, bitcoin, prepaid credit cards or gift cards from retailers such as iTunes, Amazon, or others
• Threaten you with arrest or a prison sentence

BY TEXT MESSAGE/INSTANT MESSAGING

The CRA never uses text messages or instant messaging such as Facebook Messenger or WhatsApp to communicate with taxpayers under any circumstance. If a taxpayer receives text or instant messages claiming to be from the CRA, they are scams!

WHEN IN DOUBT, ASK YOURSELF

• Why is the caller pressuring me to act immediately? Am I certain the caller is a CRA employee?
• Did I file my tax return on time? Have I received a notice of assessment or reassessment saying I owe tax?
• Have I received written communication from the CRA by email or mail about the subject of the call?
• Does the CRA have my most recent contact information, such as my email and address?
• Is the caller asking for information I would not give in my tax return or that is not related to the money I owe the CRA?
• Did I recently send a request to change my business number information?
• Do I have an instalment payment due soon?
• Have I received a statement of account about a government program I owe money to, such as employment insurance or Canada Student Loans?

Additional educational resources: Better represent taxpayers in their relationships with the CRA as a DFA-Tax Services Specialist™.

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