Lipchitz & Associates

Accounting Professionals

News PREVENTING TAX PREPARER FRAUD... Ottawa, Ontario, March 11, 2008

The Canada Revenue Agency (CRA) is warning taxpayers to stay away from return preparers who offer false tax deductions such as inflated charitable donations, child care expense claims, or even business expenses or losses.

While most preparers provide excellent service to tax filers, a few unscrupulous ones file fraudulent tax returns—and in the end it's the client who pays. Remember that even if someone else prepares your tax return, you are responsible for all the information on the return. Here are some of the things you can do to ensure that the information on your tax return is correct:

  • be aware of who you are dealing with at tax time and what their credentials are;
  • make sure the tax preparer will be giving you a copy of your return for your records; and
  • never sign a blank tax form.

The CRA takes abuse of Canada's tax laws very seriously. Tax fraud places an unfair burden on law-abiding taxpayers and businesses, and it jeopardizes the integrity of Canada's tax base. If a tax preparer is offering you fraudulent tax preparation services, you can report it anonymously by contacting the Canada Revenue Agency's Enforcement Division at your nearest tax services office.

March is Fraud Prevention Month in Canada and around the world.
Visit www.phonebusters.com to learn more about the dangers of fraud, and how you can recognize it, report it, and stop it.