Over the past several years, the Canada Revenue Agency (the “CRA”) has been in the midst of a digital service transformation.  Like the CBSA’s “CARM” project, which we previously discussed here, this initiative appears to be a response to the Canadian government’s “digital first” policy, which aims to build digital delivery into government operations and services.

While the CRA now provides Notices of Assessment electronically through online portals including “My Account” and “My Business Account”, access to such documents remains difficult for many, especially non-Canadian residents who may be unfamiliar with the Canadian tax system.

Case Study: McIntyre v. The King

A prime example of such challenges was highlighted in the 2023 Tax Court of Canada (“TCC”) case of McIntyre v. The King (2023, TCC 118).  In this case, a taxpayer who was assessed by the CRA to owe more than $17,000 had not received and could not obtain copies of the assessments giving rise to the disputed balance owing.  Despite multiple letters sent to the CRA, the taxpayer was unable to access her online account for over a year, resulting in her filing an appeal and a time extension application to object.

The TCC, on its own motion, ordered that the Crown clarify its position on the taxpayer’s time extension application, provide her with the assessments in a clear format, and provide her with the contact information of counsel to assist her if needed.  The TCC also emphasized that the ability to view issued assessments is fundamental to a taxpayer’s ability to exercise his or her rights.

Why Do I Care?

While the taxpayer in McIntyre received a positive outcome, the issue of access to CRA electronic Notices of Assessment persists.  In our practice, we often see this problem in the context of non-Canadian resident corporate representatives attempting to file GST/HST or income tax returns on behalf of their corporations.

Currently, the CRA’s “Represent a Client” service allows small business owners and corporate directors to delegate different levels of access to view and update corporate tax information to third-party representatives.  To use this service, business owners or directors must confirm authorization requests by signing into their “My Business Account”.

However, for security reasons, non-residents are not granted the same access to CRA online portals as residents. Corporate representatives may therefore struggle to review corporate tax records.  In situations where all directors in a corporation are non-residents, the CRA may need to be contacted directly to verify authorization requests or to request copies of documents to be sent by mail.

It is clear that the CRA’s new electronic system leaves room for improvement.  Moreover, with the recent announcements of further staffing cuts, those relying on contact with CRA support staff could face more unnecessary administrative delays in filing their returns.  

Takeaways

Although the TCC has been confronted with issues of access relating to electronic tax information, it seems the underlying roots of these problems remain unresolved.

Non-resident corporate representatives unable to access their Canadian tax documents can seek professional assistance by contacting us here.

Want a PDF copy of this blog?