You’re proud of that new kitchen renovation or the shiny luxury car vehicle in your driveway. You want to post the pictures to your social media account. Your friends will be envious — but have you considered who else might be critiquing your lifestyle and accomplishments?
Social Media is now a convenient way to access important information on taxes as well as government programs.
“The Canada Revenue Agency social media channels can help you stay up-to-date about the latest news on tax benefits, credits and obligations,”
Scott Klein
CPA, CA, LPA and Partner
Millards Chartered Professional Accountants
Scott Klein, CPA, CA, LPA and Partner at Millards Chartered Professional Accountants says that the CRA social media presence can be helpful to stay informed but warns clients not to post financial or potentially incriminating information through any form of social media.
“Keep in mind that while social media is a wonderful platform for sharing and staying informed, you need to be aware that the CRA may have dedicated strategies using social media as a way to collect information about you that you might not want them to have.”
The CRA calls it Indirect Verification of Income and it’s an audit technique that could be used against you. If your lifestyle and reported income don’t match up, the CRA may use social media as evidence in the course of a reassessment.
For example, posts regarding the creation of large balances in a TFSA on LinkedIn, Twitter, or Facebook may result in an audit of the individual’s TFSA.
“If the CRA believes that an individual is carrying on an equity trading business within the TFSA account, they may challenge the tax-free status of the account.”
Klein cautions that sharing sensitive information with anyone in your social circles could pose a threat.
“Yes, the direct viewing of a questionable post by the CRA could possibly result in an audit… but so could an anonymous tip. Every post puts the user at the mercy of the individuals in their network and beyond if it is shared.”
The bottom line for Klein is that social media is a incredible new way to stay updated regarding the CRA but also a danger to those with a tendency to share too much.
“Just like in our everyday lives, caution should be taken when sharing personal information with others. Whether on social media or at the mall, over-sharing has the potential to compromise you. There are some matters that should never be discussed in public and nothing is more public than social media.”
Do you have questions about the CRA? Contact your Millards Professional Chartered Accountants representative today.
Follow the CRA on Twitter @CanRevAgency
Watch CRA videos about taxes, benefits, charities, and more on YouTube
Download the CRA mobile apps to get key CRA information where and when you need it.
Scott Klein has been a bringing clarity to accounting challenges for 20 years. His practice areas include Accounting & Audit Services, Corporate & Personal Tax Services, Estate Planning Services. He has a particular gift for problem solving for credit unions and financial institutions.
Leave A Comment