Poll Respondents are Concerned about CRA Audit Powers

Are you concerned about taxpayer rights being eroded with proposals to expand CRA powers within the audit process?  The pros are:  96%  of Knowledge Bureau Report’s September poll said yes.  Here were just some of their reasons why:

Only one respondent was in for the no side:  “No not at all,” said Richard and Noreen Papineau. “If you have nothing to hide then you should have no problem swearing an oath or affidavit.”

For the yes side, there were lots of concerns:

“I am not concerned, per se, about the need for oaths and affidavits as much as the fact that the government has, once again, expanded the powers of the CRA.  They already have too much power and should be reined in.  True, you have nothing to worry about if you have nothing to hide but, as mentioned before, some regulations are so confusing that it takes a miracle to be in compliance at all.” - Robert A Litschel

“Absolutely, that CRA is now imposing ridiculously large penalties’ with the potential loss of taxpayer rights is a huge concern. Taxpayers are providing information that they have the right to withhold in an attempt to avoid additional penalties, being applied.  The stress being put on taxpayers as well as the additional time burden on the tax preparer has nothing to do with whether there was anything to hide. To me, this is verification that the expanded powers will not be used to the benefit of the taxpayer.” - B Anderson

“Canada Revenue seems always to jump to the conclusion that the taxpayer is wrong, often before a defense can be mounted. Then it is difficult to reverse their decision, and it takes a very long time to do so, meanwhile our clients think we are not “on it’” - Sandra Gibbs

“Absolutely. Incompetence at CRA is an issue and then who do you turn to fix their mistake. In their mind they make no mistakes.” - Te

“If the auditor’s can not yet get audits right causing extensive objections and tax court applications, and the people not having the right to be innocent, the expansion of powers is draconian.” - Gerald Campbell

“Absolutely concerned - I believe the CRA/Gov’t overreach on everything has got to be stopped.  We need less rules and governance as the employees they are currently over staffed as it is and under skilled for their position.  How many times have you dealt with them over the years and the person doesn’t even understand the rules themselves and then to be able to just do whatever they see fit on an audit and such seems them have too much power.  The power needs to go back to the taxpayers.” - C Gibson

“Absolutely. Some will say if there is nothing to hide don’t worry….until someone at CRA screws up (happens often) and then they start to use their wide ranging powers over the taxpayer. Where do we turn to then? Do not trust them to use extra powers judiciously.” -Terry

“I am absolutely concerned.  Have a very small practice but am having to deal with issues for a couple of clients where incompetence by either CRA in reassessing returns after an amended T4s (which suspect produce by CRA) or pushing because a change wasn’t reported (gov’t employee who should have had payments in 2022 but didn’t happen until 2023 and the T4 finally came out in late 2024) and hoping I can get someone reasonable if and when have to phone CRA.  The agent on one file is almost totally incomprehensible.
Am also concerned that the push to having everyone use “My Account” is going to disadvantage a lot of taxpayers, and not just seniors.  There are a fair few juniors how have signed up for that service but, for some reason can’t gain access to said account and have no idea what to do next.  Must confess that - although I do have one of those accounts - I never use it; “Rep a Client” works for me so far.” - Jo Ruelle

“Absolutely concerned. We are progressing further into a ‘dystopian’ Canada where the government has more and more control over our personal lives.  As Canadian citizens and taxpayers, we must stand against their draconian policies and curb CRA powers.  I would never sign any of the CRA proposed oaths and affidavits.  This is simply a ‘fear-mongering’ attempt to gouge as much revenue for a corrupt and incompetent government agency.” - Gaetan Ladouceur

“Compliance has already become excessively complicated and expensive and it is unfair to penalize for non-compliance when the rules keep changing and have become incomprehensible in many cases. In addition, the government has begun issuing new rules without thinking them through, causing massive confusion. Trust reporting in 2023 is a perfect example. Accounting firms are already over-burdened with compliance issues and this will add to their load as more taxpayers will require more in depth levels of service out of fear. They can barely keep up now.” -David Weinstein