Adjournment Proceedings

An adjournment debate about service at the Canada Revenue Agency. A Conservative member said the agency makes Canadians pay immediately, waits months to answer them, and charges them to fix the agency’s own mistakes, and asked how long waits would be and who covers the agency’s errors; he also cited a 27% rise in complaints and asked whether the government would set up automatic tax filing for simple returns. A Liberal parliamentary secretary said the agency takes fairness and accountability seriously, is improving service, and is using better data, tighter checks, and partnerships with police and international partners to catch fraud and recover stolen funds, and offered to raise constituents’ concerns with the minister.Written by AI from the debate. Updated .

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4 statements

Jacob Mantle, York—Durham

Conservative
“The tax agency treats Canadians unfairly. It forces people to pay immediately, but makes them wait months for answers and makes them pay to fix the agency's own mistakes. I want the government to tell us how long people must wait for answers, and who pays when the agency makes an error.”
Official Hansard

Mr. Speaker, I am rising to follow up on a question I asked during question period about the performance of the Canada Revenue Agency. As I pointed out in my question, the CRA shows no quarter to average Canadians while it regularly fails at its own metrics or even pays out millions of dollars to fraudsters. Most Canadians have a dim view of the CRA. At least, that is my experience. On the one hand, it is understandable; nobody likes the tax man. On the other hand, it does a pretty bad job sometimes, so some criticism is warranted. I want to share two stories, and hopefully the parliamentary secretary will listen to them and perhaps give some answers. The first is from a resident in my riding, Carolyn. She was recently approved for a CPP disability credit. This required that she refile taxes going back several years. She did that, and she consistently followed up and looked at the status. It consistently told her the adjustment request was received, but there was no more information. She called in, time after time. Eventually, she got to a CRA agent who told her she would just have to wait a bit longer, perhaps a couple more months. It could even be eight months, she was told, and if no one was assigned to her file, then she would have to file a complaint. How long should she have to wait to get a resolution? In the meantime, while she was waiting to get a decision there, the CRA reassessed her on another issue and said that she owed the government money. Like any good taxpayer, she paid when she had to, because the CRA shows no quarter to average Canadians. She had to pay on time or face the consequences. On the other hand, the CRA can wait for months and give taxpayers, residents, no answers on their issues. How long should she wait for a response? The second example is from Justin, an accountant in my riding who was helping businesses during a sale of some assets. Several companies were involved. The CRA, unfortunately, made a mistake. The CRA capitalized some expenses incurred during the sale rather than expensing them. I am not an accountant. I am not an expert here, so I am going to take him at his word on this. Assuming the CRA did make this mistake, Justin estimated it would take 18 months and thousands of dollars to file the necessary objections to get the CRA to correct its very own obvious mistake. My question to the parliamentary secretary, who I hope can provide some clarity here on the CRA’s insufficient behaviour, is this. How long should residents have to wait for responses from the CRA, and who should pay when the CRA makes a mistake and costs taxpayers money?

Brendan Hanley, Parliamentary Secretary to the Minister of Northern and Arctic Affairs

Liberal
“I hear that people are frustrated with the Canada Revenue Agency, and I will share those concerns with the minister. The agency takes fairness and accountability seriously. It is using better data, tighter checks, and partnerships with police and international groups to catch fraud and get stolen money back.”
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Official Hansard

Mr. Speaker, I am very pleased to hear the questions from my colleague, the member of Parliament for York—Durham. The stories he provided were very compelling stories. In my role as the member of Parliament for Yukon, I have heard stories as well and real cases involving real people and their frustrations with CRA. First and foremost, I want to assure the member that the Government of Canada takes the concerns raised about the integrity of our tax system and the accountability of the Canada Revenue Agency very seriously. Certainly, recognizing the individual case frustrations is something that I am happy to bring back to the ministry to ensure that we continue to improve and work on the services and accountability of the CRA. Upholding the integrity and fairness of Canada’s tax system is one of our top priorities, and on the flip side, combatting fraudulent claims remains a part of those efforts. The CRA takes this responsibility seriously and works tirelessly to uphold the trust placed in it by Canadians. The CRA actively pursues those who fail to comply with tax laws and takes action to recover funds owed, ensuring fairness for all taxpayers. Understanding the root causes of taxpayers who are non-compliant is essential to preserving the integrity of the tax system and protecting Canada’s revenue base, which supports the public programs and services that Canadians rely on. I also want to emphasize that the Canadian tax system is based on voluntary trust-based compliance and self-assessment, assuring that everyone contributes their fair share. In order to safeguard the integrity of the tax system, the CRA has implemented strong controls that are continually strengthened to address evolving risks. I also want to highlight that the CRA has implemented additional safeguards to ensure greater consistency and accuracy in refund processing. These include strengthened controls, intensified quality assurance oversight and tightened authority levels. Another means of addressing evolving risk includes collaboration with multiple partners, such as law enforcement and financial institutions. The CRA also employs technological tools, such as enhanced business intelligence and advanced data analysis, to improve risk assessments and to detect and deter the most serious instances of non-compliance. In fact, better data and more advanced analytics have allowed the CRA to better target its audits on the files with the greatest impact for Canadians. The CRA also collaborates with international organizations such as the OECD, the forum on tax administration, the FTA, and the joint chiefs of global tax enforcement, the J5. These partnerships enhance the CRA’s ability to combat offshore tax evasion and ensure that multinational corporations and digital economy participants pay their fair share of taxes. Furthermore, the CRA maintains a strict approach to non-compliance, which includes publishing all convictions on Canada.ca. Despite these efforts, fraud tactics continue to evolve, which is why the CRA remains vigilant and committed to consistently enhancing its processes. When fraud occurs, the CRA has established processes to recover funds, including reassessing returns, recovering refunds, applying civil penalties and, when warranted, referring cases to the criminal investigations program. This commitment reflects not only the CRA’s mandate, but also the trust that Canadians place in our tax system.

Jacob Mantle, York—Durham

Conservative

Linked statement

“The tax agency is not getting better. Complaints about it went up 27% last year, reaching a three-year high. Will the government set up automatic tax filing for people with simple taxes?”
Official Hansard

Mr. Speaker, I appreciate my colleague’s acknowledgement and his sympathies for my residents, but respectfully, I would request better performance from the CRA rather than sympathy. He has tried to paint a picture of actions that the government is taking to try to make things better or get better, but respectfully, the data does not back that up. Just this year, after the 100-day service improvement plan, which ended in December, the Office of the Taxpayers’ Ombudsperson’s annual report in June showed that the problem remains. It was the most complaints they had received in three years. They are up 27% from last year. The ombudsperson said that the complexity of the tax system is one of the biggest problems, and I see that all the time. They made one recommendation that the CRA itself could not accept. It was to expand automatic tax filing to taxpayers who are in simple tax situations. Will the government do that?

Brendan Hanley, Parliamentary Secretary to the Minister of Northern and Arctic Affairs

Liberal
“The tax agency works hard to be accountable and improve its service. It has strong rules to fight fraud, stop wrong refunds, and get stolen money back.”
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Official Hansard

Mr. Speaker, I again want to reiterate that the CRA is committed to accountability, continually improving service delivery, addressing fraud and upholding the integrity of our tax system. The CRA has strong controls in place and continually strengthens these measures to address evolving risks. As fraud tactics evolve, the CRA remains vigilant in enhancing its processes to prevent unwarranted refunds and recover any funds lost to fraud.

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