CRA Seeks Input on RTPP Program

The new Registration of Tax Preparers Program, proposed to come into effect in two years, will keep track of errors associated with a particular registrant in an effort of improve compliance. CRA is seeking input on this change in its relationship with professionals.

According to CRA, approximately 70% of individuals and business taxpayers use tax preparers for assistance with the annual tax filing process in Canada. Obviously, the tax preparation community is playing an important role in tax collection and the distribution of social benefits in this country. But will the new PIN requirements improve the industry that delivers the vast majority of tax returns to it or drive a wedge between it and the CRA?

Specifically, the CRA wants to hear feedback on the following:

1. Reasons why errors are found in income tax returns.
2. Who would be required to register under the RTPP.
3. The challenges registration represent for the tax preparation industry.
4. The need for both a personal and entity identification number.
5. Publication of a list of registered tax preparers.
6. The planned strategic compliance approach to more accurate tax preparation.
7. The sanctions to be imposed for those with high error factors.
8. The redress process – what happens when tax practitioners disagree with CRA on errors identified.
9. The types of services that would be beneficial to individual tax preparers and tax preparation businesses to enhance the overall completeness and accuracy of tax returns.
10. The compliance burden for individual tax preparers and tax preparation businesses associated with the proposed registration program.

The closing date for submissions is May 31, 2014 and the consultation is open to anyone. CRA is especially encouraging those who prepare tax returns for a fee to provide input.

Submissions can be made online or in writing to:
Registration of Tax Preparers Program Consultations
Canada Revenue Agency
Place de Ville, 806-8th Floor, Tower B
112 Kent Street, Ottawa, Ontario K1A 0L5.

Knowledge Bureau will be making representations both in person and in writing and encourages KBR readers to provide their input to those submissions, if desired.