Introduction
As the Canada Revenue Agency (CRA) continues to collect taxes and enforce compliance across Canada, scammers are also increasingly impersonating CRA officials to deceive taxpayers into paying false debts or providing sensitive personal information. Many Canadians now find themselves wary whenever they receive communications from anyone claiming to represent the CRA.
This comprehensive guide provides essential information on what to expect when the CRA legitimately contacts you. It will help you distinguish between genuine CRA communication and potential scams, and offer advice on how to protect yourself from fraud.
How the CRA Legitimately Contacts Canadians
The CRA may contact you for several reasons, including to verify information, request documentation, or start an audit process. Here's what you can expect from legitimate CRA communications:
1. By Phone
The CRA may call you to discuss your tax situation, but they will never demand immediate payments or use aggressive language. Here’s what to expect from a genuine CRA phone call:
- Verification of Identity: The CRA may ask for your full name, date of birth, or social insurance number to verify your identity. They may also inquire about details related to your tax account, especially if the matter concerns a business.
- Audits or Information Requests: If you are undergoing an audit or they require additional information about your tax filings, the CRA may call you to initiate the process.
The CRA will never:
- Ask for your passport, driver’s license, or health card information.
- Demand payment via prepaid credit cards, gift cards, or cryptocurrencies like Bitcoin.
- Threaten you with arrest, deportation, or involve law enforcement as a form of intimidation.
2. By Email
While the CRA generally avoids sending sensitive information via email, they may notify you by email when:
- A document, such as a Notice of Assessment or Reassessment, is available for you to view on the CRA's secure online portals (e.g., My Account, My Business Account, or Represent a Client).
- You requested a form, link, or publication during a phone call or meeting with a CRA agent. This is the only situation where the CRA may email you a link.
The CRA will never:
- Send you an email containing personal or financial information.
- Ask you to click on a link in an email that requires you to fill out personal or financial details.
- Email you a link asking for payment.
3. By Mail
The CRA may send you official communications by mail, including:
- Notices of Assessment or Reassessment: These detail any taxes you owe or refunds due.
- Payment Requests: If you owe money, the CRA may ask you to pay using official CRA payment methods, including their online portal.
- Audit Notices: The CRA may mail you information about the start of an audit or request for further documentation.
The CRA will never:
- Demand immediate payment through unconventional methods like prepaid cards, gift cards, or Bitcoin.
- Set up a meeting in a public place to take a payment from you.
4. By Text Message or Instant Messaging
The CRA does not use text messages or instant messaging apps such as WhatsApp, Facebook Messenger, or other platforms to communicate with taxpayers. Any messages received via these platforms claiming to be from the CRA are scams.
How to Protect Yourself from CRA-Related Scams
1. Verify the Caller’s Identity
If you are unsure whether a call from the CRA is legitimate, you can take the following steps:
- Ask for the caller's details: Request their name, work section, and office location. Inform them that you will verify their identity before proceeding with the call.
- Verify the call: Call the CRA directly at 1-800-959-8281 for individual inquiries or 1-800-959-5525 for business inquiries to confirm that the person contacting you is a legitimate CRA employee.
2. Check Your Tax Status Online
You can verify your tax status and check for any outstanding notices by logging into your CRA secure portals, such as My Account, My Business Account, or using the MyCRA mobile app. This can help you confirm whether any real CRA issues exist that require your attention.
3. Be Cautious of Urgent Requests
Scammers often try to create a sense of urgency by threatening arrest or deportation, or by demanding immediate payment. The CRA will never pressure you into paying without allowing time for you to verify the situation. Always remain cautious of any communication that demands urgent action.
How to Report CRA Scams
If you receive a suspicious call, email, or message claiming to be from the CRA, here’s how to report it:
- Anti-Fraud Centre: You can report scams to the Canadian Anti-Fraud Centre by visiting antifraudcentre.ca or calling 1-888-495-8501.
- Local Authorities: If you believe you have provided personal or financial information to a scammer, contact your local police, financial institution, and credit reporting agencies.
Why the CRA May Contact You
The CRA contacts taxpayers for various legitimate reasons, including:
- You owe taxes or have unpaid amounts under other government programs such as student loans or Employment Insurance.
- You failed to file a tax return, and the CRA is following up.
- The CRA has questions about records or documents you submitted.
- They are offering a Liaison Officer visit to help small businesses understand their tax obligations.
Conclusion
Being aware of how the CRA contacts Canadians and understanding what to expect can help you avoid falling victim to scams.
Always take the time to verify communications, especially those asking for personal or financial information, and report any suspicious activity to the proper authorities. By staying informed, you can protect yourself from fraud and ensure that legitimate CRA communications are handled appropriately.
If you have any questions or require further assistance, our team of accountants at Tax Partners can help you.
Please contact us by email at [email protected] or by phone at (905) 836-8755 for a FREE initial consultation appointment.
You may also visit our website (www.taxpartners.ca) to learn more about other services we offer in Canada, US and abroad.