The federal government has tabled legislation that would give the Canada Revenue Agency three unprecedented new audit powers. These proposals bypass judicial oversight and grant individual CRA auditors the ability to impose penalties and compel testimony without court authorization.

The three proposed powers:

1. Sworn Testimony Under Oath (Proposed s. 231.41) CRA would be able to put any taxpayer under oath during a routine audit — not in a courtroom, not before a judge. There is no requirement to inform the taxpayer of their right to a lawyer. There is no transcript or recording. CRA's own policy prohibits taxpayers from recording the interview. Anything said under oath can be used in criminal proceedings.
2. $50/Day Penalty — No Judge Required (Proposed s. 231.9) CRA would be able to issue a "Notice of Non-Compliance" and impose a $50/day penalty without going to court. Currently, CRA must apply to Federal Court for a compliance order. Under the new law, a single auditor can issue this penalty with no supervisory review. It can be triggered by partial non-compliance — even when a taxpayer has cooperated substantially.
3. Indefinite Clock Freeze — Entire Family Affected (Proposed s. 231.8) When the penalty is issued, the normal reassessment period is frozen — not just for the taxpayer, but for their spouse, corporations, trusts, and all related parties. Across all issues. All tax years. With no maximum duration. Even if a court later rules that CRA was wrong to issue the penalty, CRA still retains the benefit of the extra time gained during the court proceedings.

Why this matters:

CPA Canada — representing every CPA in the country — has called these proposals "an overreaction" that "can be applied indiscriminately against compliant and non-compliant taxpayers." The Canadian Bar Association has raised serious concerns. Tax professionals across Canada are alarmed.

These powers affect every Canadian who files a tax return — salaried employees, landlords, small business owners, crypto traders, and anyone with deductions or investments.

If CRA is granted these powers without safeguards, it sets a precedent for other government agencies to follow. This becomes the blueprint for unchecked government authority.

We are asking Members of Parliament to:

1. Oppose this legislation in its current form OR demand meaningful amendments including:
   • Mandatory judicial authorization before penalties are imposed
   • Independent supervisory review before an auditor can invoke these powers
   • A right-to-counsel notification before any taxpayer is placed under oath
   • Mandatory recording of all sworn testimony
   • Proportionality limits on the clock freeze (limited to the taxpayer and issues under audit) 
   • A maximum duration for reassessment period suspensions
2. Ensure Canadians are informed about the scope of these powers before they become law.

The draft legislation is already in Parliament. There is still time to act — but only if enough Canadians speak up.

Sign this petition. Share it. And contact your MP directly at ourcommons.ca/en