Ombudsperson reviewing CRA’s management of bare trust regulations

The Office of the Taxpayers’ Ombudsperson is currently investigating the Canada Revenue Agency’s handling of reporting requirements for bare trusts after the CRA unexpectedly scrapped the 2023 filing just days before the deadline. This move has sparked concerns about procedural fairness and potential violations of taxpayers’ rights under the Taxpayer Bill of Rights.

Conservative MP Adam Chambers raised the alarm by writing a letter to Ombudsperson François Boileau, prompting the preliminary review. Boileau acknowledged the potential violations and expressed shared concerns with Chambers regarding the situation. The ombudsperson’s office is actively gathering more information from the CRA to further investigate the matter.

The CRA’s decision to waive the filing requirement for bare trusts for the 2023 tax year, announced just two days before the deadline, has raised questions about the agency’s accountability and respect for taxpayers’ rights. Chambers criticized the timing of the announcement, stating that it showed a disregard for the concerns and negative impacts felt by taxpayers.

The ombudsperson’s office will also look into how the CRA plans to address the issue and ensure that taxpayers who have already filed their T3 returns are treated fairly. The CRA has a responsibility to uphold the Taxpayer Bill of Rights, and the ombudsperson’s investigation aims to hold the agency accountable for any potential violations.

As the investigation unfolds, taxpayers are eagerly awaiting the outcome to see how the CRA will rectify the situation and ensure that their rights are protected.