Page 15 - News On 7 Feb 2022

FINANCIAL FOCUS
DON’T FALL VICTIM TO TAX SCAMS

It’s that time of year, when we gather our T4s and all the other forms and documents we need to file our taxes. However, it’s
also busy season for tax scammers. How can you avoid being scammed? Your chief defense, of course, is to recognize a scam.
Here are some of the most common ones:
• Tax-related identity theft – Some thieves might try to steal your personal information and file a tax return in your name,
hoping to claim your refund. Always guard your personal data, especially your Social Insurance number (SIN). To succeed in
their efforts, identity thieves would have to know your SIN and other information. And watch for signs that your identity has
been compromised, such as Revenue Canada rejecting your online return, saying that a tax return associated with your SIN has
already been filed.
• “Ghost” tax preparers – These individuals aren’t supernatural, but their actions can be pretty scary. A ghost preparer may
finish your tax return but won’t sign it. This is a huge red flag, possibly indicating any number of bad actions, such as using fake
information to generate a larger refund, and then charging you a fee based on that refund, or even worse, outright stealing the
fee you’ve paid and then disappearing. Don’t sign your return until your preparer has also signed it. And check your own return
to make sure everything seems correct. To find a reputable tax preparer, ask your friends and relatives for referrals.
• “Phishing” emails claiming to be from Revenue Canada – You might receive emails that claim to be from Revenue Canada but
that come from scammers. These “phishing” emails might contain messages saying, “Your account or tax return is locked or
restricted,” or, “You’re eligible to receive a tax refund.” Or the subject line of the email might contain a phrase such as
“Automatic Income Tax Reminder” or “Electronic Tax Return Reminder.” These emails may contain links to a website that
appears to be that of Revenue Canada, but if you follow these links, you will be asked to open files that contain malware, which
could give the scammer remote access to your computer and your personal information. But Revenue Canada does not send
unsolicited emails to taxpayers, it won’t discuss tax account information with you via email, and it won’t use emails to solicit
sensitive financial and personal information.
• Threatening phone calls – Tax scammers may call you, posing as Revenue Canada employees and demanding payment for
back taxes, penalties or fees that you don’t owe. In reality, Revenue Canada won’t call you if you owe taxes without first sending
you a bill in the mail. Furthermore, Revenue Canada will neither require that you pay your taxes a certain way, such as with a
prepaid debit card, nor ask for your credit or debit card numbers over the phone.
It’s unfortunate that tax scammers are hard at work, but by staying vigilant and getting professional help if you need it, you can
help protect yourself from being scammed – this year and every year.

Submitted by Scott Foster
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.
Edward Jones, Member CIPF