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Compliance Spotlight: CRA’s 2026–27 Strategy to Tackle GST/HST Schemes and Tax Debt

The Canada Revenue Agency’s 2026–27 Departmental Plan increases enforcement of GST/HST refund schemes, and expands tools for managing tax debt and compliance for both individuals and businesses.

By NomadicTax Research Team · 5-8 min read

Overview of CRA’s Compliance Enforcement Goals

The CRA’s 2026–27 Departmental Plan highlights strong measures to strengthen compliance, with emphasis on:

  • Targeting GST/HST refund schemes, particularly aggressive or unscrupulous filings. (canada.ca)
  • Tackling tax evasion and fraud, including carousel fraud, via audits, international cooperation, and real-time validation. (canada.ca)
  • Expanding enforcement and investigation across aggressive tax planning and financial crimes, partnering with law enforcement and specializing task forces. (canada.ca)

Tax Debt Management & Digital Tools

Businesses and individuals can expect changes in how CRA handles outstanding balances:

  • Development of tools in the My Business Account portal to better manage corporate, GST/HST, and payroll tax debts. (canada.ca)
  • Flexible repayment options for those facing hardship. (canada.ca)
  • Increased transparency and support through improved web resources and forms aimed at high-risk groups. (canada.ca)

Example: Impact on a Small Business

Consider a small business with a history of late GST filings and some unpaid sales tax:

  • Under the updated compliance regime, this business could face increased audit risk if it is involved in refund claims that appear inflated or suspicious.
  • The owner should proactively review GST/HST refund practices, correct discrepancies, and ensure all supporting documentation is robust.
  • Where debt exists, negotiating a repayment schedule with CRA while demonstrating financial hardship may reduce penalties or enforcement pressure.

Actionable Tips for Staying Compliant

  1. Regularly review input to output ratios in GST/HST returns to avoid refund red flags.
  2. Keep meticulous records of all supporting documents for deductions or credits claimed.
  3. Use available online tools and self-assessment guides to spot risky practices.
  4. If you have existing tax debt, reach out to CRA early—it’s more effective than waiting until enforcement escalates.

Bottom Line: CRA’s 2026–27 Plan sets a clear example—greater scrutiny of refund claims, stronger enforcement, and more digital services for managing obligations. Staying ahead through accurate filings and proactive communication with CRA is key.

Sources

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