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The Ministry of Finance (MOF) automated the Tax Compliance Verification (TCV) process by creating an online portal

tax compliance verification TCV

Tax Compliance Verification (TCV)

Tax Compliance Verification (TCV) is a process to confirm whether individuals, businesses, or organizations comply with tax laws and obligations. It involves the review and validation of their tax status to ensure they have met their requirements, such as filing necessary tax returns and paying any outstanding balances.

The Canada Revenue Agency (CRA) has implemented various programs to ensure taxpayer compliance, such as audits, the Assisted Compliance Program, and the Income Verification Services.

  • In Ontario, the provincial government operates a Tax Compliance Verification (TCV) portal (http://www.etax.fin.gov.on.ca/) that allows businesses and entities to verify their tax compliance status.
  • This portal generates a TCV number, which is used to demonstrate compliance with Ontario tax obligations when applying for certain government licenses, programs, contracts, and agreements.
  • To obtain a TCV number, businesses may need to upload a Filing and Balance Confirmation (FBC) letter issued by the CRA, indicating the status of their tax filings and balances.

If you are seeking to verify your tax compliance status for provincial purposes in Ontario, you can utilize the Ontario government’s TCV portal. For federal tax compliance verification, it’s advisable to contact the CRA directly or access your tax information through the CRA’s online services, such as My Account for individuals or My Business Account for businesses. 

Steps to Use the TCV System

1. Log In to the CRA Account

  • Visit the Canada Revenue Agency (CRA) website.
  • Log in to your CRA My Business Account or CRA My Account, depending on your entity type.
  • If you do not already have an account, register using the Document Verification Service or follow the registration instructions provided on the CRA website.

2. Obtain the Filing and Balance Confirmation (FBC) Letter

  • Navigate to the “View mail” or “Correspondence” section in your CRA account.
  • Look for a document titled Filing and Balance Confirmation (FBC) letter.
  • Download and save the FBC letter. This document outlines any outstanding tax returns or balances associated with your business or individual account.

3. Visit the TCV Portal

Go to the Tax Compliance Verification (TCV) portal provided by your provincial or federal tax authority. For Ontario, use the Ontario TCV Portal.

4. Upload the FBC Letter

  • Follow the instructions on the TCV portal to upload the FBC letter.
  • This step verifies your compliance status based on the details in the letter.

5. Generate the TCV Number

  • After submitting the FBC letter, the system will verify your compliance.
  • Once verified, the portal will generate a unique Tax Compliance Verification (TCV) number.

6. Provide the TCV Number as Proof of Compliance

  • Use this number when applying for government programs, licenses, contracts, or agreements that require proof of tax compliance.
  • Share the TCV number or confirmation with the requesting entity as needed.

Who needs Tax Compliance Verification (TCV)?

In Ontario, the Tax Compliance Verification (TCV) process is essential for businesses engaging in specific activities with the provincial government. The requirement for a TCV number is not determined by the size of the company but by the nature of its interactions with government entities.

A TCV number is necessary for businesses or entities that:

  • Bid on Provincial Contracts: Businesses submitting bids for provincial contracts valued at $30,300 or more must obtain a TCV number to demonstrate tax compliance.
  • Apply for Certain Licenses and Programs: Eligibility for specific government licenses, programs, contracts, and agreements (e.g., transfer payments) requires proof of tax compliance, which is verified through the TCV number.

Small businesses are required to obtain a TCV number if they:

  • Bid on Provincial Contracts: Engage in bidding for provincial contracts meeting the specified monetary threshold.
  • Seek Specific Government Engagements: Apply for licenses, programs, or agreements that mandate tax compliance verification.
    For small businesses not involved in these activities, obtaining a TCV number is generally unnecessary.

Whether a business is small or large, the requirement for a TCV number is determined by the nature of its activities, regulatory environment, and interactions with government bodies. Businesses should check the specific requirements of their industry or contracts to determine if they need a TCV.

If you’re unsure, consult the CRA or the relevant provincial tax authority.

By providing a systematic way to verify tax status, TCV helps ensure transparency and compliance in financial and regulatory interactions.

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