Many members have reached out to tell us that the CRA has been making collection calls regarding balances caused by errors with CRA's assessing program (e.g., lifetime capital gains exemption deductions and non-resident stock option deductions for 2024).
We have contacted the CRA to seek clarification and guidance on how members and their clients should respond in these circumstances:
Q: When the CRA has a reassessment project ongoing like this, can the CRA postpone the collection calls until the reassessments are complete?
A: Collections cannot stop these files from being assigned to a collection officer, and some files may already be assigned. In some cases, there may also be related accounts that require attention. However, affected accounts will have a note (flagged) explaining the issue and the necessary steps to address it. Collection officers have been instructed not to take action on these accounts until the capital gains calculation issue is resolved.
Q: If not, what should taxpayers say to the Collections Branch?
A: If a taxpayer is contacted by Collections, we ask that they simply inform the officer that the debt arises from the capital gains exemption issue, which is still in the process of being resolved. This will ensure the account is handled appropriately.
Q: Is Collections aware of these reassessment projects?
A: Yes, Collections is fully aware of the reassessment project. A communication has been issued to all collection programs, outlining the issue and its impact on enforceable balances for the 2024 tax year and prior years.
Q: Is collections able to suspend collection calls after learning that the taxpayer will receive a reassessment?
A: In most cases, yes, flagged accounts will have collection actions postponed, and officers are instructed to wait for the reassessment to be completed before proceeding. However, there may be some situations where contact occurs. In those instances, as noted in response to what should happen if contacted by Collections, taxpayers are encouraged to inform Collections the issue is still unresolved.
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Ryan Minor
Chartered Professional Accountants of Canada
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