Fraudsters Calling In The Name Of CRA

Many a time taxpayers get a frightening call from someone representing Canada Revenue Agency (CRA) asking him to pay an astronomical sum of money in the name of tax payment due. In a week, on an average three to four clients report to me about receiving such a call.

Usually, these calls are made by fraudsters in the name of CRA and contain the common features like:

1)      You owe a large sum of money by way of tax payment which is remaining outstanding for long.

2)      CRA has proceeded against you and issued an arrest warrant.

3)      A compromise settlement can be reached by paying a certain sum of money that you need to pay immediately.

Therefore, the immediate reaction of the person receiving such calls is fearfulness and not knowing what to do immediately.

After sometimes, if you receive such call, you can immediately call your accountant (if you have one) to verify your amount of owing.

Upon receiving such calls, you should not get worried and keep in mind the following things:

1)      If you have tax owing, you can immediately verify the same by going online and checking your account with CRA under CRA module called “My Account”. “My Account” can be checked online if you are registered with CRA and have the username and the password. You can check at CRA website www.cra.gc.ca

2)      If you owe the taxes to CRA, CRA never threatens you over phone to pay up immediately but communicates in writing and reminds you several times about your outstanding debt/s.

3)      If you are not sure of the amount of tax money that you owe to CRA, you can call CRA on their general phone lines for Individual tax payers 1-800-959-8281 and 1-800-959-5525 for businesses and verify if you have any outstanding payable to them.

4)      Call your accountant (if you have one), and discuss about your outstanding tax owing, if any.

5)      Report to the Crime Stoppers on the number displayed on CRA website to stop them harassing to others.

6)      Never pay or agree to pay to the fraudsters any sum of money in compromise of any tax dues.

7)      CRA normally does not file a law suit against you for collection of any outstanding taxes but hands over the matter after a considerable time to collection department and such department asks for payment in a civilised tone and would also suggest you to make an agreement to the tax dues in installments.

Hope the above information would help you if you receive such a call.

Since the year end and the tax season is round the corner, such fraud calls will only be on the increase.

Disclaimer:

Any discussion on this blog relating to tax matters is purely for educational purposes and not taking any specific actions based the general tax rules described therein. Your tax situation could be different and as a result there may be different tax strategies applicable in your case. We do not claim the tax situations described above to be exhaustive or conclusive. In case of any specific tax situations or problems, you are advised to seek professional advice.