Three faces of Trident

Tax preparer fraud

Tax preparer fraud can be perpetrated in a variety of ways.  For example, unscrupulous tax preparers may increase the amount of a refund after the taxpayer has signed their return. The tax preparer then submits the altered return to the CRA and the increased refund is sent directly to them, without the taxpayer’s knowledge.  Tax preparer fraud can also be carried out by using one or both of the other types of illegal activity being investigated under Project Trident; identify theft and charities fraud. Some taxpayers know that they can go to an unscrupulous tax preparer to “purchase” false receipts for charitable donations to use on their tax returns.

Visit Tips to help protect against tax preparer fraud for information on how to protect yourself against tax preparer fraud.

Charities related fraud

Charities related fraud can occur in a variety of ways.  For example, a charity can be set up to sell inflated tax receipts, but perform little to no charitable work. Charities fraud can also be performed with the help of unscrupulous tax preparers. This happens when registered charities sell false donation receipts to tax preparers for a commission. Tax preparers in turn, sell these false donation receipts to taxpayers.

For more information on charities fraud and false donation receipts, visit Avoiding fraud.

Identity theft

Identity theft is the unauthorized collection and use of your personal information, usually for criminal purposes such as fraud, theft, and forgery.

The CRA has been able to identify files where an identity thief has attempted to use fraudulently obtained personal information in order to file false returns and apply for fraudulent refunds. In some cases, the identity theft is committed by unscrupulous tax preparers who received the personal information from legitimate clients.

In all cases, if the CRA has determined that a taxpayer's information may have been compromised, the CRA will act to prevent the fraudulent use of the information in the systems and processes for which the CRA is responsible.  The CRA also notifies the taxpayer.

If you think your personal information has been compromised, you should immediately contact your local police force and, if you believe your tax information may be affected, contact your local CRA tax services office at 1-800-959-8281.

To find out more about identity theft and how to protect yourself, visit Security of Taxpayer Information.

To find out more about how to protect your social insurance number, visit How can I protect my Social Insurance Number and my SIN card? (Service Canada)
and Who can ask for my SIN and when don't I have to provide my SIN? (Service Canada).

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