Millards Chartered Professional Accountants is warning all Canadians about an effective fraud scam making the rounds.

 Canadians across the country are falling victim to a scam where the fraudster poses as an agent with the Canada Revenue Agency. In many cases, the caller threatens the victim that their assets will be frozen and police will arrest them if they don’t act fast.

 Kayla Weames, CPA, CA from Millards Chartered Professional Accountants says the perpetrators are preying on one of our biggest fears.

 “Getting into trouble with the tax man is a substantial fear factor for many people and fraudsters posing as Canada Revenue Agency representatives are using that fear to push your panic button. What’s worse is that these scammers are being aggressive and threatening with hopes of scaring you to comply with an immediate payment.”

 Weames warns that these fraud attempts are often successful due to the timing.

 “We’re approaching tax season so the time is ripe for this type of scam. For those with tax debts or unfiled tax returns these situations seem more plausible.”

 So what should you do if you’re contacted by someone demanding payment for an outstanding tax debt?

 “If you receive a call, you are best to note the caller’s information and follow up with one of CRA’s published general information lines at 1‐800‐959‐8281 to verify the authenticity. You can also verify your account status and balance online, if you have created a ‘My Account’ with CRA. If you are a victim or have divulged personal or financial information you should contact your local police.”

 Millards Chartered Professional Accountants clients can always call their Millards’ advisor to check the validity with CRA to confirm any outstanding balances.

 It is important to note that it is not a criminal offence to have an outstanding tax balance. Furthermore, CRA will never ask for payment with a pre‐paid credit card or a wire transfer of funds. If returns are unfiled, CRA’s usual practice is to send a written request specifying a required date of filing, noting the pursuit of criminal action only if the terms are not met.

 “You can better protect yourself by being informed. If you have a tax amount owing, CRA will mail a notice of assessment or statement of account.”

 Weames advises that the best strategy to keep yourself safe is by not giving out your information without firmly verifying the source requiring it. She also suggests that it’s important to pass this warning along.

 “We want to get this message out and encourage others to share this warning. Many of us are savvy to this type of scam but there are many in our community that are more susceptible. Please spread the word and let everyone know about this threat.”