Tax ombudsman says root causes of issues need to be identified and tackled
The provisions in the federal budget aimed at reducing delays in processing tax returns are only the start of tackling the issue and making the tax system fairer.
Canada's Taxpayer's Ombudsman says that simply hiring more staff is not enough and the CRA must identify the root causes of delays to ensure the problem is properly addressed.
“My office regularly receives complaints from individuals who are experiencing delays in processing their returns and adjustments,” said Ombudsman Sherra Profit. “Budget 2019's funding commitment indicates a recognition of this problem and is a first step towards reducing delays.”
The budget committed $115 million in funding over five years to the CRA for additional staff to process adjustments to T1 returns, a dedicated phone support line for tax providers, and improved information technology systems.
“Through communicating with people across Canada, I know the dedicated phone lines have a positive impact on the way tax preparers interact with the CRA and as a result, serve their clients. I am optimistic the CRA will commit to maintaining this direct access beyond the five year Budget commitment,” added Profit.
Sherra Profit, Canada's Taxpayer's Ombudsman
Eliminate silos
Ms. Profit added that the CRA must keep pace with technology in line with Canadians’ expectations and the new investment to improve IT is needed.
“Most importantly, the CRA must eliminate existing silos in the way it stores taxpayer information, by allowing information to be shared across its large number of program areas,” she said.
The Ombudsman frequently receives complaints that different answers have been given by different areas of the CRA, or where the same information is required to be provided to multiple sections.
“I am encouraged by the objectives and investments set out in Budget 2019. I look forward to seeing the resulting improvements for taxpayers and benefit recipients,” Ms. Profit concluded. “Through my continued work with the Minister of National Revenue and the CRA, my Office and I are committed to protecting taxpayers' rights and ensuring the fair administration of our tax system.”
