Compliance
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 • April 21, 2026
## 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](https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/departmental-plan/2026-27-cra-departmental-plan.html?utm_source=openai))
* Tackling **tax evasion and fraud**, including carousel fraud, via audits, international cooperation, and real-time validation. ([canada.ca](https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/departmental-plan/2026-27-cra-departmental-plan.html?utm_source=openai))
* Expanding enforcement and investigation across aggressive tax planning and financial crimes, partnering with law enforcement and specializing task forces. ([canada.ca](https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/departmental-plan/2026-27-cra-departmental-plan.html?utm_source=openai))
## 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](https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/departmental-plan/2026-27-cra-departmental-plan.html?utm_source=openai))
* Flexible repayment options for those facing hardship. ([canada.ca](https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/departmental-plan/2026-27-cra-departmental-plan.html?utm_source=openai))
* Increased transparency and support through improved web resources and forms aimed at high-risk groups. ([canada.ca](https://www.canada.ca/en/revenue-agency/corporate/about-canada-revenue-agency-cra/departmental-plan/2026-27-cra-departmental-plan.html?utm_source=openai))
## 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.