OTTAWA,
ON, July 10, 2024 /CNW/ - The
Taxpayers' Ombudsperson, Mr. François Boileau, has
formally opened a systemic examination into whether the Canada
Revenue Agency (CRA) respected taxpayers' rights in its
administration of bare trust filing requirements for the 2023 tax
year.
The Government introduced new reporting requirements for trusts.
For most trust types, including bare trusts, the deadline to file a
T3 Return and Schedule 15 for 2023 was March 30, 2024. On
March 28, 2024, the last business day before the filing
deadline, the CRA announced it will not require bare trusts to file
a T3 Income Tax and Information Return (T3 return), including
Schedule 15, for the 2023 tax year, unless directly requested by
the CRA. Since this announcement, several taxpayers and
representatives, as well as members of Parliament, have reached out
to the Office of the Taxpayers' Ombudsperson (OTO) to express their
concerns.
Many stated that some bare trustees had already paid their
representatives hundreds of dollars in order to meet their 2023
filing obligations that were waived by the CRA. Representatives
were also concerned because they had spent time and money on
training, software updates, research and other areas affected by
legislative changes. That said, the decision was welcomed by some
organizations.
Based on the information received so far, the OTO is launching a
systemic examination into the clarity and timing of the CRA's
communication and into the cost of compliance issues for taxpayers
and their representatives. The examination will look into whether
the CRA respected service rights outlined in the Taxpayer Bill of
Rights, including:
- Right #6, "You have the right to complete, accurate, clear, and
timely information."
- Right #10, "You have the right to have the costs of compliance
taken into account when administering tax legislation."
With this examination, the OTO is looking to better understand
the processes in place by speaking with stakeholders, including the
CRA. The Office is committed to carrying out this review
fairly and impartially. Based on the examination's findings, the
Ombudsperson may make recommendations on ways the CRA can prevent
similar issues in the future.
Background information
The Office of the Taxpayers' Ombudsperson works independently
from the CRA. Canadians can submit complaints to the Office if they
feel they are not receiving the appropriate service from the CRA.
Our main objective is to improve the service the CRA provides to
taxpayers and benefit recipients by reviewing individual service
complaints and service issues that affect more than one person or a
segment of the population.
The Taxpayers' Ombudsperson assists, advises and informs the
Minister of National Revenue about matters relating to services
provided by the CRA. The Ombudsperson ensures, in particular, that
the CRA respects eight of the service rights outlined in the
Taxpayer Bill of Rights.
Quote
"It is not just bare trustees that have been affected by the
CRA's last-minute announcement. Representatives also put in hours
of work to understand the new requirements and file for their
clients, only to find out that their efforts may have been for
nothing.
Right #10 of the Taxpayer Bill of Rights means that you have the
right to expect that the CRA has taken into account the costs of
compliance—the time, effort and expenses needed to file—when
administering tax legislation. We will carry out our examination
through the lens of this right, as well as the other taxpayer
rights, for both bare trustees and representatives."
Mr. François Boileau,
Taxpayers' Ombudsperson
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SOURCE Office of the Taxpayers' Ombudsperson