Key Messages

This section provides key messages to support you if you are called upon to respond to media inquiries in the early days of your new mandate.

On this page

About the CRA

• Overarching messages
• The CRA’s mandate
• Requests for taxpayer information (Section 241, Income Tax Act)
• Court cases (including class-action lawsuits)

Top issues

• Pandemic compliance/COVID-19 repayment & resumption of offset
• Agency disaster relief coordination
• Cybersecurity
• Charities
• CRA employees inappropriately accessing CERB
• ESDC/CRA Privacy Breach

About the CRA

Overarching messages

• I am pleased that the Prime Minister has appointed me to this role and entrusted me to advance the Government’s agenda.
• The Agency will be briefing me in the coming weeks on the important work it does to support Canadians in meeting their tax obligations and knowing what benefits they are eligible to receive.
• As we move forward with the Government’s agenda to further the economic and social well-being of Canadians, I look forward to working with the Canada Revenue Agency (CRA) to meet and deliver on the tasks ahead and improving services for Canadians.

The CRA’s mandate

The CRA’s mandate is to ensure Canadians pay their appropriate share of taxes and receive the benefits they are entitled to. The CRA administers various acts, including the Income Tax Act, Excise Tax Act and Excise Act and has other administrative responsibilities. The CRA collects taxes on behalf of the Government of Canada, most provinces and territories, and some First Nations.

• For many Canadians, their main interaction with the Government of Canada is their tax filing experience.
• As we move forward with the Government’s agenda to further the economic and social well-being of Canadians, I look forward to working with the CRA to meet and deliver on the tasks ahead.

Requests for taxpayer information (Section 241, Income Tax Act)

Section 241 of the Income Tax Act (ITA) sets out the confidentiality requirements surrounding taxpayer information – mainly prohibiting its disclosure; with exceptions existing in very limited, specific circumstances. As such, officials of the CRA are prohibited from providing taxpayer information to anyone unless specifically authorized by Section 241 of the ITA. A breach of Section 241 is an offence punishable by fine or imprisonment.

Key messages

• The CRA must maintain the confidentiality requirements surrounding taxpayer information as set by Parliament in Section 241 of the Income Tax Act.
• As such, that will limit what I - or the CRA - can comment on regarding taxpayer-specific cases.

Court cases (including class-action lawsuits)

The CRA is frequently involved in court cases of people, corporations, and trusts charged with tax evasion or for failing to file tax returns when required. The CRA is also involved in class-action law suits, including one as lead client on behalf of the Government of Canada related to credential stuffing cyber attacks in the summer of 2020.

Key messages

• As this matter is before the courts, I cannot comment on the details of this case.

Top issues

Pandemic compliance/COVID-19 repayment & resumption of offset

The practice of applying tax refunds and benefit payments (like the GST/HST credit) against existing tax and government debt is called “offsetting” - a standard operating procedure that was used pre-pandemic by the CRA to collect outstanding taxpayer balances. This means people with a payment arrangement in place may have their benefits, and/or income tax refund, offset in addition to their payment arrangements.

In May 2020, the CRA paused most offset processes in an effort to offer Canadian families some relief during the pandemic. The CRA resumed offsetting personal income tax refunds to recover COVID-19 balances in October 2022 and further resumed offsetting benefit and credit payments, as well as tax refunds for the 2023 tax season.

Key messages

• We recognize that repayments can be stressful. As such, we will work with all individuals using a compassionate approach, to avoid placing undue hardship on them.
• Individuals are encouraged to contact the CRA by phone to discuss their payment options with an agent.

Agency disaster relief coordination

Due to the increasing number of natural and human-made disasters, it can be difficult for taxpayers to comply with their tax obligations, such as during the ongoing flooding situation in Nova Scotia or wildfires across Canada.

Key messages

• I would like to extend my utmost care and concern for those whose homes and businesses have been affected by the recent flooding in Nova Scotia or the wildfires, and who have had to evacuate for their safety.
• The government is committed to providing continued support to Canadians during these challenging times.
• If you are impacted by these disasters and are unable to meet your tax obligations, you will always be treated fairly by the CRA.
• The Agency has the discretion to cancel or waive penalties and interest due to circumstances beyond a taxpayer’s control.

Cybersecurity

Since the summer of 2020, the CRA has experienced an increase in suspicious activity on user accounts. These events have largely been driven by the CRA's key role in administering COVID-19 benefits and services, which have provided an impetus for bad actors to attempt to exploit the CRA's systems and procedures.

Key messages

• The CRA has an in-depth defense approach to security and does not rely on any single solution. This layered approach defends CRA systems from cyber attacks.
• To ensure Canadians can feel confident and safe using its online services, the CRA has implemented additional security measures, including multi-factor authentication.
• However, no organization is immune to cyber incidents or fraudulent activity.
• Taxpayers who are confirmed victims of identity fraud are not held responsible for any money paid out to scammers using their identity, and are offered credit monitoring and protection services free of charge.
• The CRA will continue working to adjust and improve its security measures in response to an ever evolving threat environment and continuing intrusion attempts.

Charities

The CRA registers charities in Canada and is responsible for making sure they comply with the requirements of the Income Tax Act and relevant common law. The CRA also contributes to the Government's efforts to combat terrorism by protecting the charitable sector in Canada from terrorist abuse. In recent months, the CRA has faced increasing scrutiny about its role in implementing national security policy through the tax system, including two third-party reports alleging prejudicial behaviour by the CRA with respect to auditing Muslim charities.

Key messages

• The CRA is firmly dedicated to diversity, inclusion and anti-racism, aligning with its values of professionalism, integrity, respect, and collaboration.
• The CRA is committed to engaging in meaningful dialogue with the charitable sector, and ensuring that the regulatory environment supports the important work they do.
• I am aware that in response to the issues raised, the National Security and Intelligence Review Agency is conducting a review of CRA and I’m assured that CRA intends to fully cooperate.

CRA employees inappropriately accessing CERB

The CRA has launched an internal review process to identify employees who inappropriately received the CERB while employed with the Agency. The CRA is currently investigating approximately 600 of its employees.

Key messages

• I understand that the CRA has launched a broad internal review process to identify any employees who inappropriately received the CERB while employed with the Agency.
• We have a duty to administer benefits fairly, to protect the integrity of our tax system and to deliver results for Canadians.
• Any wrongdoing is taken very seriously.

ESDC/CRA Privacy Breach

On June 19, 2023, the CRA detected unauthorized access and changes to taxpayer accounts by external bad actors using My Service Canada Account credentials (userIDs and passwords), and the Employment and Social Development Canada e-Link to gain access to the CRA’s My Account.

To mitigate the risk of significant harm to individuals, the e-Link was deactivated on June 21, 2023 and proactive security measures were placed on the accounts of all identified affected individuals. Corrective actions will be completed in collaboration with taxpayers to ensure that all of the information on their accounts is accurate, and that they receive any funds to which they are entitled. Accounts will continue to be monitored in the future, and all confirmed affected individuals will be offered 5 years of credit protection at no cost.

Key messages

• Following an increase in fraud and identify theft involving sources external to the CRA, out of an abundance of caution the CRA took swift action to protect its online accounts.
• We are committed to assisting those affected by cyber incidents, or other fraudulent activity perpetrated on their CRA online account as a result of identity theft.
• Taxpayers who are confirmed victims of identity fraud are not held responsible for any money paid out to scammers using their identity, and are offered credit monitoring and protection services free of charge.