How Charities Use CRA’s “Represent a Client” in Canada

Charities in Canada must stay compliant with the Canada Revenue Agency (CRA) to ensure smooth operations, such as managing tax receipts and maintaining charitable status. One way to streamline interactions with the CRA is through their “Represent a Client” service. This article explores how to set up access to CRA services using this tool and offers step-by-step guidance to help Canadian charities navigate the system with ease.

What is "Represent a Client"?

Represent a Client is an online platform provided by the CRA that allows authorized representatives—like directors, employees, or even third-party accounting firms—to access a charity's tax information, file returns, and communicate directly with the CRA on the organization’s behalf.

Why Do Canadian Charities Need This Access?

For Canadian charities, having seamless access to CRA services is essential for several reasons:

1. Filing Tax Returns: Annual T3010 filings are mandatory for registered charities. Failure to submit returns can result in penalties or even loss of charitable status.
2. Managing Receipts: Accurate tracking and reporting of charitable receipts is crucial to maintaining transparency with donors and regulators.
3. Updating Information: Charities need to frequently update their organizational details with the CRA, including board changes and address updates.
4. Granting Access to Third Parties: Many charities outsource financial management or legal representation, requiring external parties to have access.

When Should Your Charity Use a Representative?

Not every charity needs to authorize a representative, but many situations make it beneficial:

When It's Helpful to Use a Representative:

• Your charity has complex financial transactions or multiple programs
• You're facing a CRA audit or compliance review
• Your board lacks expertise in charity tax law and CRA requirements
• Your charity is undergoing a restructuring or merger
• You're behind on T3010 filings and need professional assistance
• Your accountant or lawyer regularly handles CRA matters for you
• You have staff turnover and need continuity in CRA communications

When You Might Not Need One:

• Your charity has simple finances and straightforward activities
• You have an experienced treasurer or financial officer who can handle CRA matters
• You file on time and rarely have questions for the CRA
• Your charity is small with minimal reporting requirements

Cost Considerations: While authorizing a representative is free through the CRA platform, the professional services themselves come with fees. Accountants and lawyers typically charge by the hour for CRA representation. Weigh these costs against the risk of filing errors, penalties, or compliance issues that could cost your charity more in the long run.

Step-by-Step Guide to Set Up Access

Setting up access to the CRA through Represent a Client may seem daunting, but following these steps ensures your charity is properly linked:

1. Register Your Charity with CRA

Before accessing Represent a Client, your charity must be properly registered with the CRA, and have an assigned Business Number (BN). This unique number identifies your charity for tax and regulatory purposes.

2. Assign a CRA Web Access Code (WAC)

Once registered, your charity will receive a Web Access Code (WAC). This code is essential to gain access to the CRA's online systems. If you've misplaced this code, you can request a new one by contacting the CRA.

3. Set Up a My Business Account

Each charity needs a “My Business Account” (MyBA) for online interactions with the CRA. Here’s how to create one:

• Visit the CRA Website: Go to the CRA’s My Business Account portal.
• Enter your Business Number (BN): Follow the prompts to enter your charity’s BN and Web Access Code.
• Complete Identity Verification: To confirm the identity of the charity’s primary contact, provide personal information such as birthdate or tax details.

4. Log Into Represent a Client

Once your charity’s My Business Account is active, you can access the Represent a Client service. Here’s the process:

• Visit the Represent a Client Portal: Accessible from the CRA website.
• Select "Add or Modify Client Access": Follow the steps to authorize access for individuals or third-party organizations to act on behalf of your charity.
• Verify Identity of Representatives: CRA will require the verification of the person or firm you wish to authorize.

5. Authorize a Representative

If your charity works with a third-party service provider such as an accountant or legal advisor, you can authorize them to act on behalf of the charity. They will need their own My Account profile and will require your charity’s consent.

• Provide Consent Online: Within the Represent a Client platform, you’ll see an option to grant or revoke access to individuals.
• Add the Representative’s Name: Enter their details (BN or personal identification) and select the level of access you wish to grant—such as filing returns or full access.

Understanding Authorization Levels and Permissions

The CRA offers different levels of access for representatives. It's important to understand these levels so you grant appropriate permissions:

Level 1 Security (Basic Access):

• View general account information
• Check filing status and payment history
• View correspondence from the CRA
• Best for representatives who need to monitor your account but don't file on your behalf

Level 2 Security (Full Access):

• Everything in Level 1
• File T3010 returns and other forms
• Make changes to your account
• Communicate with the CRA on your behalf
• Respond to audits and compliance reviews
• Best for accountants, lawyers, and financial professionals who actively manage your CRA obligations

Authorization Types:

One-Time Authorization: Good for single tasks like filing a specific return or responding to one CRA letter. This authorization expires automatically once the task is complete or after a set period.

Ongoing Authorization: Remains active until you revoke it. Best for representatives who handle your CRA matters regularly, like your accountant or charity lawyer.

Group Authorization: If your accounting firm or law firm has multiple staff members who may need to access your account, you can authorize the firm as a group. Any employee with the firm's RepID can then access your account based on the permissions you've set. This is more efficient than authorizing each individual person.

Using Form RC59 for Paper Authorization

While online authorization is faster, some situations require using Form RC59:

When to Use RC59:

• Your representative doesn't have a CRA My Account set up
• You prefer paper documentation for your records
• Online authorization isn't working due to technical issues
• You're authorizing access for multiple programs or accounts at once

How to Complete RC59:

1. Download Form RC59 from the CRA website
2. Fill in Part 1 with your charity's information (BN, legal name, address)
3. Fill in Part 2 with your representative's information
4. Select the authorization level and specific permissions in Part 3
5. Sign and date the form
6. Have your representative sign and date their section
7. Mail or fax the completed form to your CRA tax centre

Processing Times: Paper authorizations take 2-3 weeks to process. You'll receive confirmation by mail once the authorization is active. Your representative will also receive notification.

Security Considerations

While the Represent a Client service simplifies managing CRA compliance, it’s important to remain cautious. Only trusted individuals or firms should be granted access to your charity’s account to prevent unauthorized use.
Troubleshooting Common IssuesSome charities may face challenges during the setup process. Here are common issues and solutions:

• Lost Access Code: If you can’t find your Web Access Code, contact CRA to get a replacement.
• Login Difficulties: Ensure you’re using the correct login credentials and that your charity's information is up to date.
• Unauthorized Representative: Always double-check before authorizing third-party access to ensure security.

How to Revoke or Modify Representative Access

Circumstances change, and you may need to revoke or modify access for your representatives.

When to Revoke Access:

• Your accountant or lawyer no longer works with your charity
• A staff member leaves your organization
• You're switching service providers
• You're restructuring your charity's operations
• You suspect unauthorized use of your account
• The representative's services are no longer needed

How to Revoke Access Online:

1. Log into your My Business Account
2. Go to "Represent a Client"
3. Select "Manage Authorizations"
4. Find the representative you want to remove
5. Click "Revoke Authorization"
6. Confirm your decision

The representative will lose access immediately. They'll receive a notification that their authorization has been revoked.

How to Modify Permission Levels:You can't directly modify an existing authorization. Instead, you need to:

1. Revoke the current authorization
2. Create a new authorization with the updated permissions
3. The representative must accept the new authorization

Timeline for Changes:

• Online revocations: Immediate
• Paper revocations (RC59): 2-3 weeks to process
• New authorizations: The representative has 60 days to accept

Important Note:Always notify your representative before revoking their access. This maintains a professional relationship and prevents confusion if they try to access your account for legitimate reasons.

Common Mistakes Charities Make with Represent a Client

Avoid these frequent errors to keep your CRA account secure and compliant:

Mistake 1: Authorizing Too Many People Some charities grant access to multiple board members, staff, and service providers. This increases security risks and makes it harder to track who's accessing your account. Only authorize people who actively need to manage CRA matters for your charity.

Mistake 2: Not Updating Access When Staff Changes When an employee leaves, bookkeeper retires, or you switch accounting firms, immediately revoke their access. Leaving old authorizations active is a security risk and could lead to unauthorized filings or information disclosure.

Mistake 3: Granting Full Access When Read-Only Would Suffice Not everyone needs Level 2 access. If someone only needs to check your filing status or review correspondence, grant them Level 1 access instead. Save Level 2 access for people who actually file returns and communicate with the CRA on your behalf.

Mistake 4: Forgetting to Revoke Access for Former Board Members Board turnover is common in charities, but many forget to revoke CRA access when directors leave. This can lead to former board members accessing sensitive financial information they no longer have the right to see.

Mistake 5: Using Personal Login Instead of Representative Authorization Some charities share their My Business Account password with their accountant instead of properly authorizing them as a representative. This violates CRA security protocols and makes it impossible to track who's accessing your account. Always use the Represent a Client service instead of sharing passwords.

Mistake 6: Not Keeping Records of Who's Authorized Maintain a log of all authorized representatives, their permission levels, and the dates of authorization. This helps during board transitions and CRA audits. Review this list quarterly and update it as needed.

The Benefits of Using Represent a Client for Charities

Using the CRA’s Represent a Client platform offers several benefits to Canadian charities:

• Efficiency: Authorized representatives can easily access and file necessary tax documents, saving time.
• Transparency: The CRA's system provides clear records of your charity’s compliance status.
• Streamlined Updates: Changes in leadership or location can be easily reported to the CRA.
• Safe, Controlled Access: The charity can control who has access and to what extent, ensuring sensitive information is handled responsibly.

Setting up your charity’s access to CRA services through Represent a Client is an important step toward maintaining compliance in Canada. By following these steps and ensuring authorized representatives are properly added, you can streamline your charity’s tax filings and communications with the CRA.

Frequently Asked Questions

What is CRA used for in Canada?

The Canada Revenue Agency (CRA) manages the administration of tax laws for the federal government and most provinces and territories. It also delivers various social and economic benefit programs to Canadians.

What is the role of the Canada Revenue Agency (CRA)?

CRA’s role is to collect taxes, ensure compliance with tax laws, process tax returns, and deliver benefit payments. It also enforces tax regulations to maintain the integrity of Canada’s tax system.

Why does the Canada Revenue Agency (CRA) need some of your personal information?

CRA needs your personal information to confirm your identity, assess your income and tax obligations, determine your eligibility for credits or benefits, and protect you from fraud and identity theft.

What is the purpose of the CRA file?

Your CRA file contains all your tax-related records, including returns, assessments, and correspondence. This information helps CRA keep track of your tax history, payments, and any benefits or credits you receive.

What is the main role of CRA?

The main role of the CRA is to administer Canada’s tax system fairly and efficiently, collect government revenue, deliver benefit programs, and ensure that everyone complies with tax laws and regulations.