Mr. Speaker, the CRA recognizes that there is a significant financial and emotional impact for victims of identity theft and is doing its part to detect, address and prevent transactions associated with identity theft.
With regard to the premise of the above-noted question, it is important to note that the guiding principles of the CRA’s People First philosophy provide a framework for expected behaviours at all levels within the CRA. This includes helping people understand and meet their obligations and responsibilities, and ensuring its decisions are grounded in quality information, fairness, integrity and engagement.
With regard to part (a), as part of the identity protective services, IPS, the CRA will contact taxpayers by telephone in order to support them through the process. The CRA will verify the information on their account, and adjust the accounting as required. In addition, the CRA will ensure that proper protection and corrective actions are taken thereby returning the taxpayer to a seamless interaction with the CRA. If all requested information has been provided to the IPS program and the taxpayer still received a T4A, the taxpayer is encouraged to contact their dedicated officer in order to ensure that the matter is promptly corrected.
The CRA encourages taxpayers who receive a T4A or RL-1 slip from the CRA, for Canada emergency response benefit, CERB, payments which they did not claim, to contact the CRA as soon as possible.
The CRA is prioritizing the calls it receives concerning fraud and identity theft, ensuring that they are being answered as quickly as possible.
When a taxpayer calls the CRA’s individual tax enquiries, ITE, phone line to report a T4A slip that includes amounts for which they did not apply, including amounts relating to CERB, Canada emergency student benefit, CESB, Canada recovery benefit, CRB, Canada recovery caregiving benefit, CRCB, or Canada recovery sickness benefit, CRSB, ITE contact centre agents will triage the call depending on whether the taxpayer has already been identified as a potential victim of identity theft.
If the taxpayer needs to file their tax return before the T4A slip is corrected or deleted, the ITE agent will advise them to report the emergency or recovery benefit income that they actually received, if any, minus amounts they repaid in the same year. The agent will update the taxpayer’s file with a notepad entry to explain that the taxpayer will report a different amount than what is reported on their T4A slip to prevent the taxpayer from being asked for this same information at a later date.
Taxpayers who are confirmed victims of identity fraud will not be held responsible for any money paid out to scammers using their identity, including taxes on those amounts, and the CRA remains dedicated to resolving these incidents. Their T4A slip or RL-1 slip will be corrected as required. Once the issue has been resolved, an amended slip will be issued.
Should a discrepancy exist between the amounts reported by a taxpayer on their tax return, and the T4A slip on file, the CRA has ensured that its system will not automatically add this income to taxpayers’ accounts
The CRA has robust systems and tools in place to monitor, detect and investigate potential threats, and to neutralize threats when they occur. As scammers adapt their practices, the CRA adjusts to introduce new measures and controls to address suspicious activity.
Where appropriate, the CRA works with the Royal Canadian Mounted Police, the Canadian Anti-Fraud Centre, CAFC, financial institutions and local police. In many cases, the CRA will also provide the taxpayer with credit protection and monitoring services.
With regard to part (b), the CRA can confirm the position that taxpayers who are confirmed victims of identity fraud will not be held responsible for any money paid out to scammers, including taxes on those amounts, using their identity and the CRA remains dedicated to resolving these incidents. The CRA is responsible for ensuring that all income, deductions and credits an individual claims are accurately reported and substantiated.
With regard to part (c) the CRA has robust policies and procedures in place, as well as training and quality assurance functions, to ensure that CRA interactions with its clients are conducted consistently, accurately, and with empathy and respect.