Principal Issues: Would CRA consider standardizing certain forms, and require that they be remitted electronically by the issuer, to allow for electronic matching and reduced need for post-assessing activities?
Position: The CRA is currently exploring options that will alleviate the burden associated with the submission of supporting documentation. We recently launched a service that allows taxpayers and their authorized representatives to submit supporting documentation electronically in response to various post-assessing review activities associated with the T2 return. This service will be extended to other Agency workloads in the near future including the T1 Processing Review program next spring. We are also looking at ways of extending this functionality in a manner that would allow taxpayers/reps to submit such supporting documentation electronically at the time of filing.
2012 CTF Atlantic Conference
November 9-10, 2012
Question 3 - Audit Queries on Electronic Filed returns
Some high volume tax return preparers are experiencing audit queries, occasionally representing 10% to 20% of the returns filed. This is a very labour intensive process to gather and submit receipts for charitable donations, medical expenses, etc. We recognize the need to verify entitlement to tax credits in these areas, particularly when donation schemes represent such high risk. Would CRA consider standardizing the donation receipt form, and medical expense and prescription medication forms, and require that they be remitted electronically by the issuer, to allow for electronic matching? An initiative like this would present substantial cost savings for both CRA and practitioners and their clients.
Response from ABSB
The CRA is currently exploring options that will alleviate the burden associated with the submission of supporting documentation. We recently launched a service that allows taxpayers and their authorized representatives to submit supporting documentation electronically in response to various post-assessing review activities associated to the T2 return. This service will be extended to other Agency workloads in the near future including the T1 Processing Review program next spring. We are also looking at ways of extending this functionality in a manner that would allow taxpayers/reps to submit such supporting documentation electronically at the time of filing.
Michel Gauthier
2012-046593
November 9, 2012