{"id":30090,"date":"2025-03-14T16:58:14","date_gmt":"2025-03-14T20:58:14","guid":{"rendered":"https:\/\/www.millerthomson.com\/insights\/unknown\/collecte-de-renseignements-par-larc-de-nouvelles-regles-attendues-en-2025\/"},"modified":"2025-03-18T11:02:24","modified_gmt":"2025-03-18T15:02:24","slug":"cra-information-collection-new-rules-expected-in-2025-consequences-could-be-significant","status":"publish","type":"post","link":"https:\/\/www.millerthomson.com\/en\/insights\/corporate-tax\/cra-information-collection-new-rules-expected-in-2025-consequences-could-be-significant\/","title":{"rendered":"CRA information collection: New rules expected in 2025: Consequences could be significant"},"content":{"rendered":"\n

On April\u00a016, 2024, the federal government presented its 2024\u00a0budget announcing several tax changes, including an increase in the capital gains inclusion rate\u2014a measure that has since been cancelled. But another tax reform, which garnered less attention, could have even greater consequences: the new rules governing the collection of information by the Canada Revenue Agency (CRA).<\/p>\n\n\n\n

Changes that fly under the radar<\/h2>\n\n\n\n

Tax experts agree that these new rules have slipped under the radar of many taxpayers. Yet they\u2019re likely to significantly transform the CRA\u2019s tax auditing and information gathering practices. These changes need to be better understood, as their impact could be much broader than a capital gains inclusion increase.<\/p>\n\n\n\n

What are the new rules?<\/h2>\n\n\n\n

The Canadian tax system is based on self-assessment, which allows the CRA to collect information from taxpayers. However, a 2018 report by the Office of the Auditor General revealed that information requests were often delayed by months or even years. To address this, the 2024 budget proposed to bolster the CRA\u2019s tax audit and information gathering powers. These measures, supported by a bill (amended in August 2024), are designed to make tax audits more efficient and ensure the timely collection of tax revenues.<\/p>\n\n\n\n

Four key measures to watch out for:<\/h2>\n\n\n\n
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  1. The CRA can require a person to be examined under oath (orally or in writing).<\/li>\n\n\n\n
  2. Notices of non-compliance with penalties of up to $25,000 can be issued for failing to comply with CRA requests.<\/li>\n\n\n\n
  3. Automatic penalties can be issued for non-compliance with an enforcement order.<\/li>\n\n\n\n
  4. The limitation period can be suspended in certain situations.<\/li>\n<\/ol>\n\n\n\n

    Controversial measures<\/h2>\n\n\n\n

    These measures drew fierce criticism from the tax community. While some practitioners recognize the need for the CRA to have effective tools to conduct audits, many feel that the existing rules are already sufficient. What\u2019s more, these new measures could lead to abuses by the CRA in processing taxpayers\u2019 files.<\/p>\n\n\n\n

    Here are some of the concerns raised by tax specialists:<\/p>\n\n\n\n