Ballinger, Robin From: Sent: To: Subject: Good Morning, Ballinger, Robin September-04-14 08:38 AM 'William Dobson' RE: Administrative Approach to Right Of Confidentiality I am looking at scheduling this meeting on Monday September 8th from 2:30?3:30, will this time work with your schedule? Thank you! Robin Ballinger Compliance Programs Branch Direction g?n?rale des programmes d'observation Canada Revenue Agency Agence du revenu du Canada 344 Slater St., Ottawa ON KIA 0L5 344 rue Slater Ottawa ON K1A 0L5 Telephone Telephone 613?957?3709 Government of Canada 1 Gouvernement du Canada From: William Dobson Sent: September-03-14 5:05 PM To: Gallivan, Ted; Nichols, Judith Cc: Ballinger, Robin Subject: RE: Administrative Approach to Right Of Con?dentiality Ok the balls in your court for a time and Ted W.C. Dobson CPA, CA Tax Services, CPA Canada 613?552-0308 (M) From: Gallivan, Ted Sent: Wednesday, September 3, 2014 5:02 PM To: William Dobson; Nichols, Judith Cc: Bailinger, Robin Subject: Re: Administrative Approach to Right Of Confidentiality Yes and I also want to follow up on T1135. Next week better than this week. Ted Sent from my BlackBerry handheld. 000001 Envoy? a partir de mOn BlackBerry. From: William Dobson Sent: Wednesday, September 03, 2014 04:52 PM To: Gallivan, Ted; Nichols, Judith Subject: Administrative Approach to Right Of Con?dentiality Ted, Judith, my understanding is that in Gabe's last meeting with Ted, he described a simpler non?legislative administrative approach to the right of confidentiality--through the Bill of Rights that are available to all taxpayers. I would like to discuss this with you folks to get a better handle on the process of bringing this idea forward. Can we meet? Bill W.C. Dobson CPA, CA Tax Services, CPA Canada 613-552-0308 (Jew? Ballinger, Robin Subject: Location: Start: End: Show Time As: Recurrence: Meeting Status: Organizer: Required Attendees: Re: Adminish?a?'o'e Approach tn. .. Administrative Approach to Right Of Confidentiality and T1135 Follow Up DAC's Office, 344 Slater, 18th Floor Mon 2014?09?08 02:30 PM Mon 2014-09?08 03:30 PM Tentative (none) Not yet responded Gallivan, Ted Nichols, Judith; William Dobson Ballinger, Robin From: Gallivan, Ted Sent: September-03-14 05:03 PM To: Nichols, Judith Cc: Ballinger, Robin Subject: Re: Administrative Approach to Right Of Confidentiality Yes and I also want to follow up on T1135. Next week better than this week. Ted Sent from my BlackBerry handheld. Envoy? a partir de mon BlackBerry. From: William Dobson Sent: Wednesday, September 03, 2014 04:52 PM To: Gallivan, Ted; Nichols, Judith Subject: Administrative Approach to Right Of Con?dentiality Ted, Judith, my understanding is that in Gabe's last meeting with Ted, he described a simpler non-legislative administrative approach to the right of confidentiality--through the Bill of Rights that are available to all taxpayers. I would like to discuss this with you folks to get a better handle on the process of bringing this idea forward. Can we meet? Bill W.C. Dobson CPA, CA Tax Services, CPA Canada 613-552-0308 (M) Nichols, Judith From: William Dobson Sent: September?11-14 08:11 AM To: Nichols, Judith Cc: Gabe Hayos Subject: Meeting Attachments: CPA Canada?CRA meeting Sept 8th, 2014.docx Judith, have attached a meeting report that represents my understanding of the conversation that Ted, you and I had last Monday. I have given this report to Gabe for his review but wanted to make sure that we are on the same page on the bigger issues. Could you give this a look and apprise me of any major misunderstandings? Bill W.C. Dobson CPA, CA Tax Services, CPA Canada 613-552-0308 (M) CPA Canada-Canada Revenue Agency (CRA) Meeting Report On September 8th, 2014 I had an hour meeting with Ted Gallivan, the deputy assistant commissioner for the compliance programs branch at CRA. Judith Nichols, Ted?s EA also attended the meeting. On Ted?s agenda were the right of confidentiality and the T1135. T1135 Ted recognizes that there is still significant concern from practitioners and investment dealers about the information requirements of the T1135 and much uncertainty about the justification for information required by the form. He also recognizes that many practitioners are concerned about the penalties for late filing the returns. Ted?s objective is to lock down all further changes to the T1135. Ted?s idea is that CPA Canada bring to the table the key practitioners and investment dealer representatives for a final discussion with Lisa Anawati?s T1135 team in the international and large business directorate. The purpose of the meeting would be for CPA Canada to clearly explain all of their concerns and proposed solutions for those concerns in an open, transparent discussion and for Lisa?s team to respond with their views with both sides looking for reasonable compromises. Following this meeting, any changes that addressed the T1135 information requirements or easing/modification of late filing penalties would by locked in and no further changes would be considered. Right of Confidentiality Ted continues to look for a proposal that compliance program branch can support and is encouraged by his understanding that CPA Canada supports the disclosure by the taxpayer and practitioner of the tax risk facts. Ted agrees that a balanced right of confidentiality should not leave the compliance programs branch in a position as the only decision-maker but has concerns that the ombudsman would not be the appropriate third party. He also noted that the concerns expressed internally with the confidentiality right emanate from the large case audit group who believe that such a right could be a significant impediment to their right to information. The discussion that ensued dealt with a potential role for appeals branch in the application of the right of confidentiality, changes to the audit manual and the best practices in tax currently under development at CPA Canada. The general ideas floated during this I discussion were as follows: CRA would provide detail on the information that it would normally require on all audits with explanations on why the information is necessary for the audit. Based on the assessment of risk or earlier audit findings, CRA would prepare a supplemental information request, explain what information it will require and an explanation of why the information is necessary for the audit. For certain types of information as defined through discussions with CPA Canada, the auditor would seek permission from Appeals Branch to obtain it. The taxpayer could at this time prepare counter arguments. The basis for the appeals decision would be a framework agreement with CRA and CPA Canada on what information is to be considered a con?dential communication and exceptions to the right to confidential communications. A timely decision from appeals would settle the matter. If the Appeals decision goes against a taxpayer who refuses to accept the Appeals decision, the normal legal remedies would be pursued, the requirement letter or a compliance order. This process could be a part of the audit manual that auditors must follow and also could be incorporated into the best practices currently under development in a section entitled, dealing with Canada Revenue Agency. Ted also stressed that materiality on this issue was important. There are about 1200 very large economic entitles that comprise the large case inventory. He would prefer to exclude these entities from the right and noted that many of these groups already use lawyers who do have privilege. indicated that I would report this discussion to Gabe but that at the moment these thoughts were simply ideas that CPA Canada would consider. Other Matters A few other matters arose in the course of these discussions: 1. I expressed some concern that the EAS (early access site) for final but not yet issued forms did not contain enough information; it contained simply the form itself. Ted indicated that he would support adding information to the site for our use including justi?cations for the form and highlighting what the changes in the form had been made. Ted would like to automate this process in a way that CPA Canada can manage on its own. I indicated as well that the Terms of Reference for the governance committee included a forms mandate and that we would pursue our interest in new and revised forms with the committees. 2. I expressed some surprise that the registration of tax preparers might be made voluntary, wondering why any tax preparer would register when there is no immediate benefit to them. Ted indicated that consideration would likely be given to changing the risk assessment model so that taxpayers using registered preparers had a higher threshold for risk assessment and audit selection. I suggested that Ted also consider the extent to which paper verification is requested for efiled returns if the preparer is registered. 3. Ted reported that there had been a negative reaction to our request for intervener status in the Guidon case. He personally understands our interest but it was felt that CRA should have been advised of our intention prior to the intervention request. With that the meeting ended. I will follow up with Judith after consulting with Gabe. Date 5 ?wK?C?mim -WJV 'Wm?ku/az, ii I i 1326 I (19"3 K5 .7 ad's "cye?ei Ran/15' . MW ?rm: Q??LD-sz-t?? "u #5333? [aways S1732 r? fw? 2" Ufa!? 411,24 0% Mmm?? - Gmuwfv-K IQng . S?Nbe? ewva "t?i?xf??vs?b {aw/L014 09% - Rel-.151 0?16 (PH: CUM . are? {he ,5me f} nigh av? (wt?e 1 Jr at?" 7765/ Nolfle' ?oan-q aer? 7 1 ghi??-v 11> tea?g. V1910 7 E7 gash [Ham 4/ km game/11M 1-0 WM 000009 Page] Date bylve/VJCJ app-?13M cfa? OMAZ A JO g" Qi??jgdv?waLr Pibh?i?; Kh91?4;v\ 19(1) 6; ream. . k413i)" Qatar/ml? [AW/(ma 7?9 L4 opinion-+6 Wok? l/Lsh moch Woar? ngg? . ~617ch ?gmw?x L. ma at ?aty?ilf: V: I a Pane/r: r- Kai/ranwk =24: rm? {7?5 i - ;Z%f?b4yf? Slm?f (fazez?f (55M $12523? 37-? '2 a, I N. pct/L ,?dg?y ?ex Wkka-xl. r? . d7 I I gun? PD Wm?gh?m lAd-M? Vm/Sw a; i-A?d?mf?? (yqj?pkk MVL-faz? . Lt: OM c?p @0361 :2 LDng? '1 00?10 papier postc Wmaticn Page! post?consumer paper Nichols, Judith From: William Dobson Sent: September-03-14 05:05 PM To: Gallivan, Ted; Nichols, Judith Cc: Ballinger, Robin Subject: RE: Administrative Approach to Right Of Confidentiality Ok the balls in your court for a time and Ted W.C. Dobson CPA, CA Tax Services, CPA Canada 613-552-0308 (M) From: Galliva n, Ted Sent: Wednesday, September 3, 2014 5:02 PM To: William Dobson; Nichols, Judith Cc: Ballinger, Robin Subject: Re: Administrative Approach to Right Of Confidentiality Yes and I also want to follow up on T1135. Next week better than this week. Ted Sent from my BlackBerry handheld. Envoy? a partir de mon BlackBerry. From: William Dobson Sent: Wednesday, September 03, 2014 04:52 PM To: Gallivan, Ted; Nichols, Judith Subject: Administrative Approach to Right Of Confidentiality Ted, Judith, my understanding is that in Gabe's last meeting with Ted, he described a simpler non-legislative administrative approach to the right of confidentiality--through the Bill of Rights that are available to all taxpayers. I would like to discuss this with you folks to get a better handle on the process of bringing this idea forward. Can we meet? Bill W.C. Dobson CPA, CA Tax Services, CPA Canada 613-552?0308 (M) Nichols, Judith Subject: Location: Start: End: Recurrence: Meeting Status: Organizer: Required Attendees: Re: Administrative Approach Administrative Approach to Right Of Confidentiality and T1135 Follow Up DAC's Office, 344 Slater, 18th Floor Mon 2014?0908 02:30 PM Mon 2014?09-08 03:30 PM (none) Accepted Gallivan, Ted Nichols, Judith; William Dobson Nichols, Judith From: Gallivan, Ted Sent: September?O3-14 05:03 PM To: Nichols, Judith Cc: Ballinger, Robin Subject: Re: Administrative Approach to Right Of Confidentiality Yes and I also want to follow up on T1135. Next week better than this week. Ted Sent from my BlackBerry handheld. Envoy? a partir de mon BlackBerry. From: William Dobson Sent: Wednesday, September 03, 2014 04:52 PM To: Gallivan, Ted; Nichols, Judith Subject: Administrative Approach to Right Of Con?dentiality Ted, Judith, my understanding is that in Gabe's last meeting with Ted, he described a simpler non-legislative administrative approach to the right of confidentiality--through the Bill of Rights that are available to all taxpayers. I would like to discuss this with you folks to get a better handle on the process of bringing this idea forward. Can we meet? Bill W.C. Dobson CPA, CA Tax Services, CPA Canada 613?552?0308 (M) Denault, Suzanne - Subject: Location: Start: End: Recurrence: Meeting Status: Organizer: Required Attendees: RE: Administrati'a-E Approach to. .. Administrative Approach to Right Of Confidentiality and T1135 Follow Up DAC's Office, 344 Slater, 18th Floor Mon 2014-09-08 02:30 PM Mon 2014-09-08 03:30 PM (none) Meeting organizer Gallivan, Ted Nichots, Judith; William Dobson Denault, Suzanne From: Gallivan, Ted Sent: September-03?l4 05:03 PM To: Nichols, Judith Cc: Ballinger, Robin Subject: Re: Administrative Approach to Right Of Confidentiality Yes and I also want to follow up on T1135. Next week better than this week. Ted Sent from my BlackBerry handheld. Envoy? a partir de mon BiackBerry. From: William Dobson Sent: Wednesday, September 03, 2014 04:52 PM To: Gallivan, Ted; Nichols, Judith Subject: Administrative Approach to Right Of Con?dentiality Ted, Judith, my understanding is that in Gabe?s last meeting with Ted, he described a simpler non?legislative administrative approach to the right of confidentiality--through the Bill of Rights that are available to all taxpayers. I would like to discuss this with you f0!ks to get a better handle on the process of bringing this idea forward. Can we meet? Bill W.C. Dobson CPA, CA Tax Services, CPA Canada 613-552?0308 (M)