CRA and CPA Canada have recently released a number of questions and answers on the Liaison Officer Initiative (LOI) noting that:

  • The LOI is voluntary and there is no link between not wishing to participate and future compliance/enforcement actions.
  • Taxpayers who do not fix errors identified in the LOI could still be exposed as they may be evaluated through CRA’s separate risk assessment program as high risk.
  • The LOI was originally a pilot project from 2014 to 2016 and was only offered to select industry groups across much of Canada. The program is now permanent and will be expanded to include new businesses in any sector.
  • A LOI visit does not constitute an enforcement action and, therefore, would not preclude a Voluntary Disclosure by a taxpayer.

For further information see Video Tax News Monthly Tax Update Newsletter, Issue No. 422