T183 - electronic signatures?

Hello to the group.

CRA does not accept electronic signatures on T183, see efile for electronic filers on CRA website. Their documentation also requires retention of original (physically signed documents) but I have had zero concerns with electronic (PDF, fax) copies supplied to CRA when responding to review requests.

There appears to be some limited acceptance of electronic signatures (T1013).

Greg

@Dominique - CRA specifically says no to e-signatures on the T183
Copied from their site (googled “e-signature T183”)

Form T183, Information Return for Electronic Filing of an Individual’s Income Tax and Benefit Return**

Download Form T183, Information Return for Electronic Filing of an Individual’s Income Tax and Benefit Return.

Print the form directly from your software product or from the site above.

The Form T183 must be completed in duplicate with the Part D signed by the taxpayer or the person who is required to file the return under the Income Tax Act (for example: Trustee in Bankruptcy or Legal Representative) before the return is electronically transmitted.

The form is year specific and only the current year version is acceptable.

Note: Electronic or digital signatures that are obtained through the use of signature software, as well as the use of signature labels or stamps, are not acceptable on Form T183. A signature by someone other than the taxpayer, the trustee, or the legal representative, is acceptable as long as an applicable power of attorney exists. If a power of attorney exists, this must be retained with the T183 form for at least six years following the date the return was electronically filed.

The entries on Form T183 must accurately reflect the entries on the electronic return. If the return is not accepted as originally transmitted, and the changes required for retransmission alter the refund or balance owing by more than $300, a new Form T183 must be completed and signed by the client.

@dklassencga

Hi Debbie,
Thank you for your input. I’ve been following this topic closely for the past 15 years. There appears to have been some movement on this topic in the past few years.

  1. Scans and images of hand written signatures are now allowable for T183 and T1013. We no longer have to retain the paper copy.

  2. Receipt of signature on paper via a scanned document or image is acceptable.

  3. Creation of a signature by hand using a pen on paper has been augmented by an the acceptance of a hand drawn signature on a touch surface using a stylus / e-pen appears to be acceptable but not specifically defined.

Hand written signatures on a touch surface using a Stylus or or an e-pen is acceptable for T183.

Digital Signatures prohibited by CRA for T183, T1013, and others.

“Electronic or digital signatures that are obtained through the use of signature software, as well as the use of signature labels or stamps, are not acceptable on Form T183.”

Source: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/efile-electronic-filers/forms-t183-t1013.html

RETENTION - Both Taxpayer and Tax Preparer must maintain a copy for 6 full years.

"Retention of documents

As required by subsection 150.1(4) of the Income Tax Act, both you and your client have to keep a copy of the completed signed Form T183. Instruct your client not to submit the form unless we ask for it. Keep your copy in a secure location.

Form T183 must be kept for at least six years following the date that the return was electronically filed. Written permission is required for you or your client to destroy Form T183 before the six-year period is up. For more information, see Information Circular IC78–10R5, Books and Records Retention/Disposal."

Source: https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/efile-electronic-filers/forms-t183-t1013.html

ACCEPTABLE FORMATS - paper, pdf, accessible and readable electronic formats, microfiche, microfilm, and electronic imaging formats.

What is an acceptable format?

The Canada Revenue Agency (CRA) accepts records that are produced and kept in:

  • paper format
  • paper format, and later converted to and stored in an accessible and readable electronic format
  • an accessible and readable electronic format

Records and supporting documents originally produced in paper format

You have to keep these items in paper format, unless they are saved in acceptable microfiche, microfilm, or electronic image formats.

You can also see the Canadian General Standards Board (CGSB) publication at CAN/CGSB 72.34, Electronic Records as Documentary Evidence.
…"

Source: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/keeping-records/acceptable-format-imaging-paper-documents-backing-electronic-files.html

EXCLUDED SIGNATURE TYPES

e-Signature is prohibited on CRA T183

What is an e-Signature?
An electronic signature , or e-signature , refers to data in electronic form, which is logically associated with other data in electronic form and which is used by the signatory to sign.

Digital Signatures are prohibited on by CRA on T183.

What is a Digital Signature?
Electronic signatures are a legal concept distinct from digital signatures, a cryptographic mechanism often used to implement electronic signatures. While an electronic signature can be as simple as a name entered in an electronic document, digital signatures are increasingly used in e-commerce and in regulatory filings to implement electronic signatures in a cryptographically protected way. Standardization agencies like NIST or ETSI provide standards for their implementation (e.g., NIST-DSS, XAdES or PAdES).[4][6] The concept itself is not new, with common law jurisdictions having recognized telegraph signatures as far back as the mid-19th century and faxed signatures since the 1980s.

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@dklassencga

Debbie -
I have called but not asked for a Ruling re signatures by hand via a stylus. There appears to be no exclusion for this. There appears to be no requirement for a signature in blue ink on paper.

There is Canada.ca document which outlines in great details what is or is not acceptable documentation. This costs several hundreds of dollars to purchase and I have not bothered to do so yet.

I am sure that we are in for more clarification and updates re formats, verification, authentication, and retention.

Given that T183s are submitted (generally) as a scan or a fax, which are essentially the same thing, there is no way to tell “how” a signature was affixed to a document.

Use of Docusign or Acrobat is out (with their digi-sigs and encryption attached they don’t “look like” real signatures). But there is no way to determine, once scanned, whether a document was signed by pen, pencil or stylus, at least as far as I can determine. And, even if so, the requirement is really for a hand signature, which a stylus also represents. The purpose appears to be to ensure that the taxpayer - and not anyone else - has signed the T183. (I guess CRA has never heard of forgers…)

The entire regime is a bit archaic and paranoid at the root IMNSHO.

Curiously, there is a current set of meetings in November with tax preparers on the subject of “authorizations”…no specifics on what CRA is looking for, but I’m guessing that methods of signature and submission will be high on the list. I’ll be at one of those sessions and will see what they’re thinking…maybe.

I can confirm the treatment (that I have had) regarding T183 signatures using a stylus. I have had clients send me copies of T183s that they have digitally signed with a stylus, which have in turn been provided to CRA when requested. No problems at all.

Ironically and in contrast, I had clients that entered their email address on the T183 that they signed, which was then submitted to CRA. CRA questioned it because the T183 that was submitted electronically on filing did not have the email address….but that is another story.

To me, this whole digital signature issue is a bit amusing. I would submit that a document that has been digitally signed (by Docusign or Adobe for instance), could be more secure and authentic than a hand signed document. Almost anyone can scribble some scrawl on a piece of paper and then claim it is the real McCoy. Happens all the time……as @SmallBizGuy suggests!

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@byron.johnson you were questioned on the email address added ones because the lack of an email address on the originally submitted one essentially proves that you filed before you had permission from your client to do so. (Which in theory is grounds for them to pull your right to use the e-file system)

The stylus passes because it is used by the human hand to make a signature. True, any hand could put it on there, but we are supposed to be operating in an ethical profession. The more people try to skirt the rules, the tighter the rules will get and the longer it will take for CRA to realize that in the real tax world, our clients trust us to do our jobs, and do them well. (ie: no hand signature required)

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Please Note
Only excerpts of this document are posted here. Please refer to the full document and the references for further information. Please note that this document considers the use of a stylus as for of e-signature.
DDF

15 July 2019

"# Government of Canada Guidance on Using Electronic Signatures
From Treasury Board of Canada Secretariat

1.0 - Initial publication - 15 July 2019

Notice

In September 2017, TBS provided guidance on e-signatures to all Departmental Security Officers via e-mail. That guidance still applies and should be considered an integral part of this document. This document complements and expands on that guidance. The guidance issued in September 2017 is provided at Annex D for ease of reference. This guidance document is intended for GC departments and agencies contemplating the use of electronic signatures in support of their day-to-day business activities. This is a “living” document that will evolve over time in response to lessons learned, changes in related legislative requirements or future technological advancements in the electronic signature area. It should be noted that nothing stated within this document is intended to replace or override existing legislation or policy. Any such discrepancies should be brought to the attention of the Treasury Board of Canada Secretariat’s Office of the Chief Information Officer at zzcybers@tbs-sct.gc.ca.

On this page

" 1.1. Background

In keeping with the objectives of the Government of Canada’s (GC’s) Digital Government initiative, the GC continues to:

  • streamline its internal and external business processes
  • improve how it delivers services to Canadians

The GC can achieve these goals, in part, by replacing paper-based processes with electronic practices that are more modern, faster and easier to use.

The concept of conducting business electronically is nothing new. A number of jurisdictions, including the GC and Canada’s provinces and territories, have developed laws, policies and standards for electronic documents and electronic signatures (e-signatures) since the mid-1990s.

The primary function of a signature is to provide evidence of the signatory’s:

  • identity
  • intent to sign
  • agreement to be bound by the contents of the document

1.2. Purpose and scope

This document provides guidance on using e-signatures in support of the GC’s day-to-day business activities. It aims to clarify:

  • what constitutes an e-signature
  • what forms of e-signature are appropriate in the context of the business activity

This document is not intended to be:

  • a substitute for legal advice (business owners should always consult with their legal counsel)
  • a framework to protect sensitive information from unauthorized disclosure (this document does not address confidentiality requirements)

1.3. Intended audience

This guidance is for GC departmentsFootnote1 that are exploring the use of e-signatures in support of their day-to-day business activities.


The purpose of this Appendix is to provide examples of the types of business activities that may correspond to each assurance level. In general, as the importance and/or value of the business activity increases, so does the associated assurance level. However, it should be noted that the business activity examples provided here are for illustrative purposes only and in no way are meant to be prescriptive .

Individual departments should perform their own assessments in the context of their business needs and requirements. The overall objective should be to:

  • leverage existing investments where feasible (departments should use what they already have where it makes sense)
  • enhance the user experience
  • implement cost-effective, sensible solutions commensurate with the assessed assurance level

Table C1: examples of business activities|Assurance level|Business activities (examples only)|
| — | — |
|Assurance Level 4|* Online financial transactions where existing legislation requires a digital signature or secure e-signature (for example, Electronic Payments Regulations and Payment and Settlements Requisitioning Regulations )

  • PIPEDA Part 2 use cases where applicable
  • Binding contracts with external entities that exceed a certain dollar value (based on risk tolerance as determined by departmental evaluation)|
    |Assurance Level 3|* Managerial approvals of financial transactions that do not require a digital signature or secure e-signature (for example, approval of employee expense claims)
  • Binding contracts with external entities that are below a certain dollar value (based on risk tolerance as determined by departmental evaluation)
  • One or more of the business activity examples provided below under Assurance Level 2 may apply here (risk tolerance varies by department; some departments may elect to implement more stringent security controls for some of the business activities identified below under Assurance Level 2)|
    |Assurance Level 2|* Leave submission and approvals
  • Travel requests and approvals
  • Time sheet submissions and approvals
  • Expense claim submissions (but not approvals)
  • Online submission of certain applications or forms from external users
  • Intradepartmental memoranda of understanding|
    |Assurance Level 1|* Everyday correspondence with little to no implied commitment on behalf of the sender or the GC|

For additional guidance, you may want to refer to the Canadian General Standard Board’s standard entitled Electronic Records as Documentary Evidence which provides information and guidance for developing policies, procedures, processes and documentation that support the reliability, accuracy and authenticity of electronic records. Additionally, the Directive on Identity Management and Standard on Identity and Credential Assurance provide guidance with respect to validating the identity of individuals which apply equally to the use of electronic signatures.

We trust this is of assistance. Please address any inquiries to SEC@tbs-sct.gc.ca.

Best regards,
Rita Whittle
Director General, Security and Identity Management Policy, Chief Information Officer Branch
Treasury Board of Canada Secretariat / Government of Canada
Rita.Whittle@tbs-sct.gc.ca / Tel: 613-369-9683 / TTY: 613-369-9371

Footnotes

Footnote 1

Throughout this document, “departments” denotes federal departments and agencies.

Return to footnote1referrer

Footnote 2

An exception to the opt in requirement is section 36 of PIPEDA.

Return to footnote2referrer

Footnote 3

Currently, there are over 20 federal acts and almost 30 regulations listed on the Department of Justice Canada website that include references to “electronic signature” (based on a search for the term “electronic signature” using the Department of Justice Canada advanced search tool).

Return to footnote3referrer

Footnote 4

The Secure Electronic Signature Regulations are annexed to both PIPEDA and the Canada Evidence Act .

Return to footnote4referrer

Footnote 5

Both the algorithm description and the recognition process are currently under review.

Return to footnote5referrer

Footnote 6

Note that assurance levels should not be confused with levels of authority.

Return to footnote6referrer

Footnote 7

Note that other tools such as the ITSG 33: Security Categorization Guide may also be used to assist in the assessment process.

Return to footnote7referrer

Footnote 8

A secure time-stamp is obtained from a trusted source. The integrity of the secure time-stamp is cryptographically protected.

Return to footnote8referrer

Footnote 9

Note that electronic signatures created using certificates issued by internal GC CAs such as the Internal Credential Management (ICM) CA are typically not capable of supporting interaction with external entities, as the issuing CA is not a recognized trust anchor outside the GC. (There are a limited number of exceptions where ICM issues certificates to external entities, but such exceptions do not offer a viable long-term solution.)

Return to footnote9referrer

Footnote 10

Based on a search for the term “electronic signature” using the Department of Justice Canada advanced search tool.

Return to footnote10referrer

Footnote 11

Signature electronic equivalents found in provincial and territorial electronic transaction laws do not apply to the GC.

Return to footnote11referrer

Footnote 12

The UECA states that authorities responsible for the legal signature requirement can make regulations where it is felt that the situation implies a degree of reliability of identification or association with the document to be signed. Similarly, signatures submitted to government (provincial and territorial) must conform to information technology requirements and to any rules on the method of making them or their reliability. See the Uniform Law Conference of Canada’s discussion of the Uniform Electronic Commerce Act .

Return to footnote12referrer

Footnote 13

The properties identified in the SES Regulations describe a digital signature based on the Rivet, Shamir, Adleman (RSA) algorithm. Other digital signature algorithms such as the Elliptic Curve Digital Signature Algorithm (ECDSA) are also valid but have different mathematical properties that do not precisely conform to the description from the SES Regulations.

Return to footnote13referrer

Footnote 14

As advancements in biometric technology continue to be made, this restriction may be revisited.

Return to footnote14referrer

Footnote 15

Note that multi-factor software cryptographic token (for example, a PKI-based soft token such as a myKEY soft token) is purposely omitted here because it is not considered to be an adequate multi-factor solution according to the guidance provided in ITSP.30.031. Furthermore, PKI-based soft tokens are not sufficient at Assurance Level 3 unless the authentication process is coupled with another appropriate Assurance Level 2 token (which is typically not supported with existing GC deployments).

Return to footnote15referrer

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SOURCE

https://www.canada.ca/en/government/system/digital-government/online-security-privacy/government-canada-guidance-using-electronic-signatures.html

Note:
I came across these references about 5 years ago while creating forensic bookkeeping records from limited source documentation for a construction contractor in Calgary who was in Tax Court after having tried to defend himself in audit without complete records and no General Ledger. In Tax Court he had to meet higher levels of documentary support. I found some videos and tax law training documents which led me to these Government of Canada documents.
DDF

“For additional guidance, you may want to refer to the Canadian General Standard Board’s standard entitled Electronic Records as Documentary Evidence which provides information and guidance for developing policies, procedures, processes and documentation that support the reliability, accuracy and authenticity of electronic records.”

" Additionally, the Directive on Identity Management and Standard on Identity and Credential Assurance provide guidance with respect to validating the identity of individuals which apply equally to the use of electronic signatures."

Reference #1 # Electronic records as documentary evidence .

http://www.publications.gc.ca/site/eng/9.839939/publication.html

https://www.tpsgc-pwgsc.gc.ca/ongc-cgsb/programme-program/normes-standards/can-cgsb-72-34-eng.html

Reference #2 - Directive on Identity Management

Ensures effective identity management practices by outlining requirements to support departments in the establishment, use and validation of identity information.

https://www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=16577

Reference #3 - Appendix A: Standard on Identity and Credential Assurance

Provides details on the minimum requirements for establishing an identity or credential assurance level for a Government of Canada program or service. The Standard on Identity and Credential Assurance can be found here: https://www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=32612

Resource #4 - Directive on Identity Management - Appendix A: Standard on Identity and Credential Assurance
https://www.tbs-sct.gc.ca/pol/doc-eng.aspx?id=32612

For those going to Tax Court this is one of the reference books on Electronic Evidence in Canada. These and other such sources delve deeply into the rules, principles, and noteworthy applications relating to electronic documents, electronic signatures, verification, and authentication.
DDF

Electronic Evidence in Canada

By: Graham Underwood, Jonathan Penner

Electronic Evidence in Canada contains a broad examination of electronically-stored information (“ESI”) from its creation to its admission into evidence in civil and criminal proceedings. The book discusses the nature and characteristics of ESI and how these influence admissibility at trial. It then covers the retention and destruction of electronic records, the obligations to preserve and produce ESI for litigation, spoliation, and the admissibility of ESI at trial. The last part of the work considers specific modalities of admissibility of ESI, whether as real, documentary, or demonstrative evidence, and includes a discussion of the admissibility of metadata, ESI from the Internet, computer-generated re-creations, and other issues unique to ESI. The book also contains an extensive appendices section which includes the Sedona Canada Principles, Guidelines for the Discovery of Electronic Documents in Ontario, National Model Practice Direction for the Use of Technology in Civil Litigation (plus accompanying National Generic Protocol), the Sedona Canada commentary on proportionality in electronic disclosure and discovery, and model e-discovery and e-trial precedents.

https://store.thomsonreuters.ca/product-detail/electronic-evidence-in-canada/

More sources
\ 63x93 Technology Law Series: Electronic Evidence and E-Discovery (2010)
General Editor and Series Creator: Sunny Handa

Virtually every legal case today, from small claims to class actions, involves electronic information. In its variety of forms—emails, word-processing documents, spreadsheets and databases, metadata, and digital photographs—electronic evidence presents novel issues that play a major role in the outcome of litigation.

David Wotherspoon and Alex Cameron take you through the rules related to the gathering, retention and disclosure of electronic information and how to effectively use it or challenge it in court. This book is an essential resource for anyone who participates in civil litigation or electronic information management.

Reference - https://www.mindengross.com/docs/default-source/publications/tax-notes-non-resident-trust-taxation-israeli-style

EVIDENTIARY AND PROCEDURAL MATTERS IN
THE TAX COURT OF CANADA
October 2014 — Donald G.H. Bowman, Counsel in the Tax Department with the Toronto Office of
Number 621 Dentons Canada LLP

Reference - CED: An Overview Of The Law — Documentary Evidence, May 06, 2019, Prepared by Peter Sankoff, LL.M.
https://www.westlawnextcanada.com/blog/insider/category/legal-research/ced-an-overview-of-the-law-documentary-evidence-1051/

@dklassencga…I would just like to clarify about the T183 email discrepancy I mentioned, wherein you state that proves that I filed the return before having proper permission to do so. It seems you may have read into my statement too much. Respectfully, I did not share enough details of the story for one to arrive at that (incorrect) conclusion. CRA did not even suggest that I filed without proper permission, nor did they censure me whatsoever over the matter.

@byron.johnson It was not my intention to essentially accuse you of improper filing procedures. Exactly why one should never answer these things in a hurry.

My intention was to say that CRA questioned it because what was originally filed didn’t have information that the form provided upon their later audit query had. Therefore the perception of CRA is that they have proof you filed before having a signed T183.

I have also had the same issue with CRA when filing for a trucker that went on the road after signing and his spouse brought in more deductions before I had filed so I included them but forgot to get a new T183.

Sorry my post came off as accusatory - it certainly wasn’t meant to be.

T183 signatures, retention, formats and verification.

There are several programs and requirements regarding T183. Any one of these may trigger an audit and/or a rejection. The most common occurs in the first year or couple of years with a new EFiler Number. This can happen to long term Tax Preparers. When you change your business entity you must apply for a new EFiler Number and be subject to the mandatory verification program.

1. EFile Program News

EFILE for electronic filers

EFILE

The EFILE and ReFILE services are open for transmissions from February 18, 2019 at 8:30 a.m. (Eastern time), until January 24, 2020 , for the electronic filing of your clients’ 2015, 2016, 2017, and 2018 T1 personal income tax and benefit returns.

Did you know that electronic filers can now scan T183 forms for retention?

Electronic filers can now keep a scanned version of the original T183 form signed by the taxpayer. If an electronic filer chooses to retain scanned versions of these forms, they must adhere to the requirements of Section 230 of the Income Tax Act by ensuring a minimum level of resolution in an electronically readable format, as the scanned version is considered a “record”. Electronic filers must ensure that the manner of storage does not in any way change the information contained in the signed version of the T183 form provided by the taxpayer. The electronic filer and the taxpayer must retain either a scanned or paper version of the T183 form for six years from the end of the taxation year that the form relates to.

Source:

https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/efile-electronic-filers/efile-news-program-updates.html

2. RC4018 Electronic Filers Manual for 2018 Income Tax and Benefits Returns

Source
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4018/electronic-filers-manual-2016-income-tax-returns-chapter-1.html#ntr

3. Forms T183 and T1013

Form T183, Information Return for Electronic Filing of an Individual’s Income Tax and Benefit Return

Download Form T183, Information Return for Electronic Filing of an Individual’s Income Tax and Benefit Return.

Print the form directly from your software product or from the site above.

The Form T183 must be completed in duplicate with the Part D signed by the taxpayer or the person who is required to file the return under the Income Tax Act (for example: Trustee in Bankruptcy or Legal Representative) before the return is electronically transmitted.

The form is year specific and only the current year version is acceptable.

Note: Electronic or digital signatures that are obtained through the use of signature software, as well as the use of signature labels or stamps, are not acceptable on Form T183. A signature by someone other than the taxpayer, the trustee, or the legal representative, is acceptable as long as an applicable power of attorney exists. If a power of attorney exists, this must be retained with the T183 form for at least six years following the date the return was electronically filed.

The entries on Form T183 must accurately reflect the entries on the electronic return. If the return is not accepted as originally transmitted, and the changes required for retransmission alter the refund or balance owing by more than $300, a new Form T183 must be completed and signed by the client.

Retention of documents

As required by subsection 150.1(4) of the Income Tax Act, both you and your client have to keep a copy of the completed signed Form T183. Instruct your client not to submit the form unless we ask for it. Keep your copy in a secure location.

Form T183 must be kept for at least six years following the date that the return was electronically filed. Written permission is required for you or your client to destroy Form T183 before the six-year period is up. For more information, see Information Circular IC78–10R5, Books and Records Retention/Disposal.

We will periodically monitor Form T183 and will ask you for completed copies. If you fail to provide these completed forms when we ask for them, we may suspend your electronic filing privileges.
Source
https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/efile-electronic-filers/forms-t183-t1013.html

4. T183 Monitoring Program

Monitoring

We monitor the activities of electronic filers to ensure that they comply with our requirements. This maintains a high standard of quality for electronic returns and transmissions. If an electronic filer does not comply with these requirements during the program, we will issue warning letters as required and can suspend EFILE privileges.

We monitor such items as the following:

We periodically request a number of copies of the T183 from each electronic filer. We may also request written explanation for errors noted during our review. EFILE privileges may be suspended if the forms and/or written explanations we request are not provided in the time frame that we specify.

Should we request T183 forms from you that are signed by someone other than the taxpayer (for example: Power of Attorney; Trustee in bankruptcy; or Executor or Administrator of the estate), you must submit copies of the documentation showing proof along with the requested T183 form.

Suspension

Conditions for suspension

The Canada Revenue Agency (CRA) reserves the right to revoke an electronic filer’s authorization to participate in electronic filing if any one of the following conditions exists:

  1. failure to meet or continue to meet the suitability screening criteria;
  2. deterioration in the quality of individual transmissions;
  3. an unacceptable cumulative error rate;
  4. violation of the CRA’s advertising standards;
  5. unethical practices in tax return preparation;
  6. late, missing, illegible, or incomplete T183 forms;
  7. stockpiling of returns for any reason other than the unavailability of the CRA’s systems, unless the clients have been informed;
  8. significant complaints about an electronic filer;
  9. other facts or disreputable conduct that would reflect adversely on the program;
  10. failure to completely report any loss, suspected loss, or unauthorized disclosure of an EFILE password or client information;
  11. failure to protect the confidentiality of an EFILE number and password;
  12. failure to ensure that a client’s source documents fully support all income, deductions, and credits reported or claimed on the return;
  13. failure by a preparer to deal directly with the client;
  14. transmitting returns for a non registered or unapproved tax preparer;
  15. failure to protect the confidential information obtained to electronically file the returns of your clients; and
  16. failure to inform the CRA of changes to your EFILE registration information (i.e. management and control related changes, address, phone and fax number, email address, etc.).

Warning letter

In most cases, we send a warning letter to the electronic filer before suspension. The letter informs the electronic filer of inconsistencies and asks the electronic filer to take corrective action. Any electronic filer who does not comply with the request will be suspended.

In other cases, an electronic filer could be suspended immediately, without warning and without possibility of reinstatement.

Administrative review process

Applicants who are denied participation, or electronic filers who are suspended, have the right to an administrative review. You should make your request for an administrative review in writing to the Chief of Appeals at one of the Appeals Intake Centres. Send a copy of the denial or suspension letter with your request. The time limit for filing this request is within 90 days of the date we mailed the denial or suspension notice.

Source:

https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/efile-electronic-filers/eligibility.html#moni

5. T183 investigation in the event of a client complaint

Occasionally a client may complain about an eFile Authorization. The may refer to the amount, address info, or signature given or not given. In this case there will be an T183 investigation re this client and possibly also a T183 audit.

6. T183 Audit due to suspicion of taxpayer fraud - SIN or Income

Note - This observations are from my experience working for the second largest Liberty Tax franchise owner in Canada. They had three locations with high risk clients, plus two regular seasonal locations, and one year round office. We welcomed all taxpayers. We had some locations with some unusual and highly colorful characters. To protect ourselves we required two forms of ID verification plus two reference contacts. During the early discount tax season we had security staff helping us manage the crowds. As long as we had a clear, specified, and assembly line procedure we were fine. At our busiest locations could process 300 to 600 tax returns and discount checks in one day. None the less some curious and interesting situations did occur. Our checklists, verification procedures, and documentation kept us in CRA’s good books.

In the event that a tax office has the misfortune to prepare tax returns for suspicious or fraudulent tax returns there will be a field audit of the T183 and possibly the T1013 as well.

This may occur in such situations as follows:

  • fraudulent use of a SIN by multiple people.
  • multiple families in one location.
  • suspicious family relationships.
  • suspicious residency status
  • other such as extensive out of country travel and/or suspicious ties

Other high risk situations or programs may include:

  • suspicious overseas net worth.
  • reports of undeclared accounts overseas
  • IVI Audit - Indirect Verification of Income Audit

Just to add my own experience to what Byron has mentioned…

Not all clients visit our office. Some returns get mailed in, some are delivered by other family members who are bringing in their own tax info, some are emailed, e-couriered etc. Likewise, not every client appears in person to pick up their completed return. Some get sent home with other family members, e-couriered, sent via Canada Post, regular courier, etc along with documents (including T183) to sign and return to our office (via Canada Post, courier, carrier pigeion or direct drop off).

The completed T1 return sits in a holding pattern until the signed T183 arrives back in the office. Once the duly executed T183 (and other documents) are received, the T1 return can be efiled. Sometimes several weeks might pass between completion of the return and the efiling of the return, depending on how long it takes a client to return their T183.

I receive T183’s where a client has written in their email address, their pre-authorized debit information, signed in more than one place, and written in their name and title (even if it is the client signing their own T183). I have received T183’s in the mail that have even had grocery lists and other personal notes written out on them.

The point being, no matter what other information the clients marks up the T183 with, provided it includes a proper signature in Part D, you should be free to efile the T1 once you have received this form back from the client. The client making notes on the form or filling in information that is not necessary does not invalidate the T183 nor does it mean the T1 return was efiled before the T183 was signed.

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Thanks for mentioning that @snoplowguy. I also get T183’s back with some of the oddest signatures and information added. I just scan the form and file the return. Can’t help that some clients are over-achievers.

@byron.johnson
@snoplowguy

I have had odd situations occur with signed T183, T1013, RC59, T1Adj, T1 Paper Filed, and GST Return Paper Filed (12 years ago).

These were a few of the oddest.

T1 Adj re matching - signed by taxpayer.
Matching was in error for some unusual technical reasons due to slip being a non-taxable item. Client signed T1 Adj. Slip and supporting documentation re non-taxable status were attached.

  1. T1 Adj#1 was rejected as incorrect.
  2. T1 Adj#2 refiled with more supporting documentation. Client signed second T1 Adj form.
  3. T1 Adj#2 was rejected as not signed by taxpayer but by preparer. Our signatures are not even close.
  4. T1 Adj#3 was sent with cover letter signed by both taxpayer and tax preparer stating that the original T1Adj was signed by taxpayer and requesting that the cover letter and the attached photocopies of both our drivers licenses be accepted as proof of identity.

T1 183 - signed by taxpayer.
During T1 183 Audit the validity of one signature was questioned. I sent a cover letter with copy of a signed photo ID (drivers license) proving the identity and the validity of the signature.

Note
While working at a very large tax preparation firm in Ontario, as part of our T1 on-boarding process for early discounting immediate check issuance we required the following proof of identity.

  1. Signed intake form with name, address, landline, cell phone, email, all alternate addresses during the year, and two alternate contacts.

  2. One Photo ID with signature - Driver’s License, Ontario Health Card with photo id, Passport, etc. We took a photo copy.

In the event of no photo ID we required a personal letter from two professionals - Homeless Shelter, Health Care Coordinator, Minister, Doctor, School Principal, etc.

  1. Two address confirmation - Rent receipt, utility bills, etc. We copied the header ID only.

  2. If claiming child custody - Original of child’s Health Card. We took a photo copy.

This intake procedure (with an extensive income and tax data checklist signed by taxpayer) helped us with being able to respond to CRA for post assessment review and/or T1 Matching.

Even still we were subject to several other issues not related to signature but related to Tax Information Validation such as the following:-

  • failure to report income for those with 3+ T4’s and/or EI.

  • identity fraud - multiple SIN’s for one person to receive the refund check for someone else. Foolishly they used their real physical address.

  • claiming child custody as a single parent even though child was removed from home by social services, shared with spouse, or given to spouse.

  • claiming foster child relationship to actual grandchild (with DTC with ADD and other issues due to Mother’s use of drugs during pregnancy). Grandson was removed from daughter’s custody. Grandmother claimed the tax credits for child care, medical care, fitness amounts, arts amounts. Grandmother failed to disclose that she had been reimbursed for these amounts. As a result she would not have been eligible for such a high refund amount.

  • Reporting First Nations income as non-taxable with letter from the employer but with no confirmation from CRA and incorrect T4.

  • this but a teeny taste of the oddball issues

I experience the same thing… I pride myself on being very flexible and customize the tax experience for each clients based on their needs… as long as it falls within CRA scope :slight_smile:

We use Citrix ShareFile for our client files. We have 2 “packages” for clients and new clients alike. The first package consists of a Client Data Sheet with all their pertinent personal info, a T1013, T183. The second is for small business clients with the additional RC59.

As one third of our clients are working over seas we get them to upload signed copies into Sharefile. Our on shore clientele, about 65% use Sharefile and do not attend our office. Depending on type of client, proprietor or regular tax payer,
they get the appropriate packet. We also get them to sign new T1013, RC 59, every year.

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@gabe

Hi Gabe,
It’s been a very long time since we have spoken in person. It is nice to see you back in the Forum.

I like your idea of having the T1013 resigned every year. That would keep a large practice’s annual onboarding very streamlined.

Which level of capabilities or plan are you using for Citrix ShareFile - the full features with Zapier folder generation included?

Do you using any of the add-ons?

  • e-Signature for engagement signature
  • Podio for workflow


Do you use any of the integrations such as SharePoint Cloud or OneDrive?

YES! Imagine if the IRS had Autofill. What a dream. What software are you using in the US? We use proconnect. it’s ok but the client file upload was a nightmare last year.