Credit Cards

Can the CRA check what we put as our income on our credit card application?

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  • Jul 2nd, 2018 8:55 am
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Sep 18, 2004
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Can the CRA check what we put as our income on our credit card application?

I am just wondering if this information is shared between the financial institutions and the CRA.
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Yes, it indeed is at the joint annual symposium between the financial institutions and the CRA.
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Airbum88 wrote: I am just wondering if this information is shared between the financial institutions and the CRA.
Not shared directly but available to CRA upon annual audits of all financial institutions. CRA does this sort of thing routinely. Looking for non filiers and unreported income by obtaining information from third parties through audits. For example if your credit card application shows income of $100K and you only reported $25K you can expect a letter from CRA. Since you gave the credit card company your SIN and DOB you will be easy to trace.
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McMaggot wrote: Yes, it indeed is at the joint annual symposium between the financial institutions and the CRA.
Only at the annual symposium, not the semi-annual.
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DaveTheDude wrote: Not shared directly but available to CRA upon annual audits of all financial institutions. CRA does this sort of thing routinely. Looking for non filiers and unreported income by obtaining information from third parties through audits. For example if your credit card application shows income of $100K and you only reported $25K you can expect a letter from CRA. Since you gave the credit card company your SIN and DOB you will be easy to trace.
Did someone actually get into trouble with CRA because they lied about their income on the application to credit cards applications? (For example, filling they have income of $200K for the TD aeroplan privileged but indeed only makes $100K)
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DaveTheDude wrote: Not shared directly but available to CRA upon annual audits of all financial institutions. CRA does this sort of thing routinely. Looking for non filiers and unreported income by obtaining information from third parties through audits. For example if your credit card application shows income of $100K and you only reported $25K you can expect a letter from CRA. Since you gave the credit card company your SIN and DOB you will be easy to trace.
:lol: if any of this had any truth to it, 95% of RFD members would get a letter from CRA.
You don’t have any clue how many people actually lie about their income on a credit card app do you?
It’s easy for someone to say they make 100k on a credit app, but CRA has to prove that you do.
They don’t check credit applications of people, they don’t have the resource to.
Nice try though.
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random pattern wrote: Only at the annual symposium, not the semi-annual.
The only reason I know is because I have the catering contract but then again I also have the catering contract for the Bilderberg Conference.
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ChanelJ12 wrote: Did someone actually get into trouble with CRA because they lied about their income on the application to credit cards applications? (For example, filling they have income of $200K for the TD aeroplan privileged but indeed only makes $100K)
No.
The CRA doesn’t care about you lying on a credit card application.
If you truly bring in 200k, but only claim 100k, they have other more logical ways of finding out.
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ChanelJ12 wrote: Did someone actually get into trouble with CRA because they lied about their income on the application to credit cards applications? (For example, filling they have income of $200K for the TD aeroplan privileged but indeed only makes $100K)
Usually when there is a discrepancy between a tax return and third party information, the third party information tends to be more accurate.
This discrepancy identifies potential unreported income to CRA. What happens next is they are contacted and subjected to a factual or net worth audit. A net worth audit being the increase in the individual’s net assets plus their expenditures they made over the years matched to their income reported.
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coolintheshade wrote: :lol: if any of this had any truth to it, 95% of RFD members would get a letter from CRA.
You don’t have any clue how many people actually lie about their income on a credit card app do you?
It’s easy for someone to say they make 100k on a credit app, but CRA has to prove that you do.
They don’t check credit applications of people, they don’t have the resource to.
Nice try though.
You don’t have any clue but nice try though. Matching third party information to tax returns via computer programs and proving unreported income through net worth audits. Quite a large Audit section then. Even more resources now with all the new hiring by snowflake in Ottawa.
Last edited by DaveTheDude on Jun 27th, 2018 7:32 am, edited 1 time in total.
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DaveTheDude wrote: You don’t have any clue but nice try though. Have done this job myself when I was with CRA. Matching third party information to tax returns via computer programs and proving unreported income through net worth audits. Quite a large Audit section then. Even more resources now with all the new hiring by snowflake in Ottawa.
Oh wonderful an ex-CRA employee SP5 auditor who couldn't understand audit left and right (at the SP5 level let alone AU3 level), and had to leave CRA for merely a business that prepares tax returns and the odd Section 85 rollover for their client...based on a compilation agreement only.

The truth is CRA knows the truth based on your bank statements and cash "held outside your bank" when they do a net worth assessment. Even if you lied on your mortgage loan, CRA doesn't care. They care more about what's running in your bank accounts and not running in your bank accounts (i.e. using unreported cash exchanged to Canadian dollars to go shopping in the USA - yup CRA knows about that too.)
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Cypherus21 wrote: Oh wonderful an ex-CRA employee SP5 auditor who couldn't understand audit left and right (at the SP5 level let alone AU3 level), and had to leave CRA for merely a business that prepares tax returns and the odd Section 85 rollover for their client...based on a compilation agreement only.

The truth is CRA knows the truth based on your bank statements and cash "held outside your bank" when they do a net worth assessment. Even if you lied on your mortgage loan, CRA doesn't care. They care more about what's running in your bank accounts and not running in your bank accounts (i.e. using unreported cash exchanged to Canadian dollars to go shopping in the USA - yup CRA knows about that too.)
+1 exactly
Easy to sniff out the BS isn’t it?
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Cypherus21 wrote: Oh wonderful an ex-CRA employee SP5 auditor who couldn't understand audit left and right (at the SP5 level let alone AU3 level), and had to leave CRA for merely a business that prepares tax returns and the odd Section 85 rollover for their client...based on a compilation agreement only.

The truth is CRA knows the truth based on your bank statements and cash "held outside your bank" when they do a net worth assessment. Even if you lied on your mortgage loan, CRA doesn't care. They care more about what's running in your bank accounts and not running in your bank accounts (i.e. using unreported cash exchanged to Canadian dollars to go shopping in the USA - yup CRA knows about that too.)
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Cypherus21 wrote: Oh wonderful an ex-CRA employee SP5 auditor who couldn't understand audit left and right (at the SP5 level let alone AU3 level), and had to leave CRA for merely a business that prepares tax returns and the odd Section 85 rollover for their client...based on a compilation agreement only.

The truth is CRA knows the truth based on your bank statements and cash "held outside your bank" when they do a net worth assessment. Even if you lied on your mortgage loan, CRA doesn't care. They care more about what's running in your bank accounts and not running in your bank accounts (i.e. using unreported cash exchanged to Canadian dollars to go shopping in the USA - yup CRA knows about that too.)
Lots of personal shots from someone who seems to know very little about CRA. If you work there stop embarrassing the Agency. My point is the person identified as the one to be audited is done through leads. A large percentage of those leads come from matching programs from third parties. You don’t seem to know this but lots of people use only cash and avoid banks. Bank statements are non existent yet they live well.
Last edited by DaveTheDude on Jun 27th, 2018 7:35 am, edited 1 time in total.
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DaveTheDude wrote: Lots of personal shots from someone who seems to know very little about CRA. If you work there stop embarrassing the Agency. My point is the person identified as the one to be audited is done through leads. A large percentage of those leads come from matching programs from third parties. You don’t seem to know this but lots of people use only cash and avoid banks. Bank statements are non existent yet they live well. So the CRA has an Identification and Compliance section to specifically catch these people. Lesson learned now.
Not trying to poke a soft spot but looks like I did. Sounds like you are just appealing to authority. To clarify, I know when I am dealing with an SP5 auditor as opposed to do dealing with an AU3 auditor or MG6 audit manager when concerning a client. You clearly demonstrated a knowledge of CRA program in your post and opened yourself up.... Be warned. You are kinda of on the defensive, probably because you are obliged to uphold post employment ethics after leaving the CRA. This is common knowledge with big 4 accounting firms who tend to hire ex CRA employees for a little "insight". Truth be told I deal with net worth audits a lot, and usually it's because the client was not forthcoming with me with their "offshore" investments and the CRA net worth technique pretty much captures what I did not know. All I can do is decrease the net worth with some business expenses.... So next time you parade yourself on a credit card forum about how you know about CRA procedures, don't be surprised if you are questioned particularly from a CPA perspective...
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In addition, a Supervisor from the big 5 that I talked to who has the ability to approve/decline cc applications said that most people pad in an additional of 10% in their reported annual income, so he's not even surprised anymore. He said that if the applicants didn't, there would be way fewer people going to be approved for World Elite and Visa Infinite credit cards.
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Airbum88 wrote: I am just wondering if this information is shared between the financial institutions and the CRA.
The bank can request your notice of assessment.
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Lol the CRA... the wife had a GST overpayment $48 made an online payment 2 months ago, CRA sends a late notice yesterday, called they said payment went to wrong department in CRA and it will take them 6 months that’s right 6 months for them to transfer $48 within their own department 🤦‍♂️
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I bet OP is enjoying some gourmet popcorn right about now.
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