Canada Revenue Agency becoming stricter
Canada Revenue Agency becoming stricter
In years past, our firm has typically been able to sign documentation for Canada Revenue Agency (CRA) on behalf of our German clients by way of our power of attorney. This allows the process of filing tax returns when clients sell real estate or probate an estate to flow much more quickly and smoothly, as we can look after things as they come up.
Unfortunately, we have found more recently that CRA is becoming much more strict about requiring documents to be signed by the specific person on whose behalf the tax filing is being prepared. If the correct person does not sign documents in the original, they are now being returned to the address on file (typically that of the taxpayer’s lawyer or accountant) for resigning. This causes delays and in extreme cases can even lead to missing a deadline altogether.
In the case of German residents filing taxes in Canada, this risk is augmented by the fact that the taxpayers are located abroad. In addition, it is not uncommon for them to be located in a different city from the person preparing their tax returns. These factors all create ample opportunity for delay.
If you will be filing a tax return in Canada, we recommend that you obtain qualified advice from a Canadian lawyer or accountant and ensure that you personally sign all forms that require the taxpayer’s signature. You should also ensure that you can document all information provided in form of appropriate receipts and legal documentation.