Did you know that the CRA is temporarily changing how it conducts audits and reassessments due to COVID-19? Our Chestermere accountant takes a closer look and breaks down all the changes for you in our article this week.
While changes to the CRA’s audit and reassessment process due to COVID-19 didn’t make many headlines like the unveiling of the Canada Emergency Response Benefit (CERB), the curtailment of these activities is still quite important to a large number of Canadian business owners and taxpayers as it will impact how they interact with the CRA for the foreseeable future, and may provide some short-term relief. Our CPA in Chestermere has gone through all the changes so you don’t have to, and put together an easily digestible article with all the important highlights.
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CRA COVID-19 Audit and Reassessment Changes
The curtailment of audits and reassessments by the CRA during the beginning stages of the COVID-19 pandemic will be a welcome relief to any business owner or taxpayer who may have been struggling to meet their obligations before the virus struck. It will also allow individuals and businesses more flexibility when it comes to repaying their debts. Without further delay, here are the main CRA changes you need to know about from this little-known policy change.
Collection activities
Until further notice, the CRA will not begin any collection activities on new debts and will be working with those who owe money to set up flexible payment arrangements. Those who are unable to comply with any current tax obligations because of circumstances out of their control may also apply for the waiving or cancellation of penalties or interest on their obligations via the Request for Taxpayer Relief (Form RC4288).
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Audits
For most taxpayers, the CRA has said they will not be launching any new audits until further notice. They will also halt any requests for new information relating to a current audit, have said no audits will be finalized, and no reassessments will be issued. The only audit interaction the CRA says will continue are in cases where the legal deadline to reassess a tax return is nearing, and in some cases where GST/HST refund claims that are high risk require contact before they can be paid out.
Objections
According to the CRA any objections related to a taxpayer’s entitlement to benefits or credits will not be delayed due to COVID-19. Other objections related to different tax matters meanwhile have been temporarily placed on hold and will continue at a later date. The deadline for filing any objections due by March 18, 2020 has also been extended until June 30, 2020.
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Appeals
All sittings and conference calls for the Tax Court of Canada scheduled between March 16, 2020, and July 3, 2020 have been cancelled. Anyone affected by this decision will be contacted and kept apprised of their current situation. The offices of the Tax Court of Canada are also closed until further notice.
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If you’re concerned about the state of your personal taxes or finances in light of the ongoing pandemic, book a free consultation with one of our trusted Chartered Professional Accountants today and let us help guide you through this uncertain economic time.
