The Canada Revenue Agency (CRA) operates on the fundamental belief that you are more likely to comply with the law if you have the information and other services that you need to meet your obligations. These obligations may include paying taxes or providing information.
CRA wants to make sure you receive all your entitlements and that you understand and can exercise your rights. They describe and define these rights in the RC17, Taxpayer Bill of Rights Guide: Understanding your rights as a taxpayer.
The Taxpayer Bill of Rights describes and defines 16 rights and builds upon the CRA's corporate values of professionalism, respect, integrity, and cooperation. It describes the treatment you are entitled to when you deal with the CRA. You can expect that the CRA will serve you with high standards of accuracy, professionalism, courteousness, and fairness. The Taxpayer Bill of Rights also sets out the CRA Commitment to Small Business to ensure their interactions with the CRA are conducted as efficiently and effectively as possible.
In addition to the 16 rights that apply to all taxpayers, the Taxpayer Bill of Rights also has a five-part Commitment to Small Business. The five commitments made to small business acknowledge their importance as the engine of growth in the Canadian economy. These commitments also complement the Government's pledge to create a competitive, dynamic, business environment in which Canadian businesses will thrive. They recognize the role the Canada Revenue Agency can play in minimizing the compliance burden, specifically the amount of paperwork involved in complying with the tax system.
The Minister of National Revenue has identified a need for greater awareness among taxpayers (particularly small businesses) about what they can expect when they deal with the CRA. This includes awareness about what their rights are, and what avenues of redress are available to them when they believe they have received inadequate service from the CRA. This was developed through interactions with taxpayers, their representatives, business groups, professional associations, and Members of Parliament, and in consultation with CRA managers and front-line employees.
It’s thought that the Taxpayer Bill of Rights will increase transparency and accountability on the part of the CRA and, as a result, improve the quality of all taxpayers' service experiences with the CRA. The more you know your rights, it’s thought that the more your compliance level will increase, and the less CRA has to check on said compliance.
Here are the 16 rights:
1. You have the right to receive entitlements and to pay no more and no less than what is required by law.
2. You have the right to service in both official languages.
3. You have the right to privacy and confidentiality.
4. You have the right to a formal review and a subsequent appeal.
5. You have the right to be treated professionally, courteously, and fairly
6. You have the right to complete, accurate, clear, and timely information
7. You have the right, unless otherwise provided by law, not to pay income tax amounts in dispute before you have had an impartial review
8. You have the right to have the law applied consistently
9. You have the right to lodge a service complaint and to be provided with an explanation of our findings
10. You have the right to have the costs of compliance taken into account when administering tax legislation
11. You have the right to expect us to be accountable
12. You have the right to relief from penalties and interest under tax legislation because of extraordinary circumstances
13. You have the right to expect us to publish our service standards and report annually
14. You have the right to expect us to warn you about questionable tax schemes in a timely manner
15. You have the right to be represented by a person of your choice
16. You have the right to lodge a service complaint or request a formal review without fear of reprisal
Here are the 5 commitments to business:
1. The CRA is committed to administering the tax system in a way that minimizes the costs of compliance for small businesses
2. The CRA is committed to working with all governments to streamline service, minimize cost, and reduce the compliance burden
3. The CRA is committed to providing service offerings that meet the needs of small businesses
4. The CRA is committed to conducting outreach activities that help small businesses comply with the legislation we administer
5. The CRA is committed to explaining how we conduct our business with small businesses