No Reforms This Tax Season

The Canada Revenue Agency says promised improvements to dysfunctional call centres will not be made in time for the next tax season. Managers yesterday told the Senate national finance committee they don’t want to “make the situation worse” by updating systems this winter: “Agents are torn between answering a lot of questions.”

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MPs Kill Heritage Tax Credit

The Commons environment committee yesterday killed a Conservative bill that promised tax credits for owners of heritage properties. Credits for spending on restoration would have cost up to $67 million a year, according to the Parliamentary Budget Office: “We are losing heritage buildings at an alarming rate.”

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Ethics Test For Fed Suppliers

The Department of Public Works has drafted an ethics test for clothing suppliers to the federal government. It follows complaints over working conditions at garment factories overseas: “The federal government is concerned about ethically responsible practices in the manufacturing of apparel.”

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Can Sue For Border Privacy

Public Safety Minister Ralph Goodale says travelers whose privacy rights are breached at border crossings can always sue for damages. Goodale yesterday told the Senate national security committee that searches of cellphones, laptops and electronic tablets by Customs agents are commonplace: “Officers have that power right now.”

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Feds Investigate TV Gadget

The Competition Bureau is in Federal Court against makers of the AbTronic X2 for alleged false or misleading TV claims. Investigators disclosed in an affidavit the AbTronic was under investigation for two years. A consumers’ advocate questioned the Bureau’s priorities: “There are dozens of issues that matter more to consumers.”

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House Panel OKs P.E.I. Bill

The Commons heritage committee yesterday took just 36 minutes to debate and approve a bill proclaiming Charlottetown as the birthplace of Confederation. MPs noted neither women nor Indigenous people were invited to the 1864 Charlottetown Conference that led to union of the colonies: “The 150th anniversary of Confederation has been a little bit whitewashed.”

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MPs To Pass Pot Bill Today

The Commons today will vote to repeal a 1923 ban on recreational marijuana. The bill must still clear the Senate. Cabinet said final passage is urgently required to meet a July 1, 2018 deadline: “What happens when the kids go to school stoned?”

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CRA Skews Its Own Ratings

Auditor General Michael Ferguson says the Canada Revenue Agency misrepresented the number of errors it makes in answering taxpayers’ questions. The rate was five, even 10 times higher than that claimed by the Agency, Ferguson told the Commons public accounts committee: “They need to resolve this very quickly.”

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Sues Over 5-Year Grievance

A federal lawsuit alleges the RCMP waited more than five years to rule on a routine staff grievance. An Alberta officer complained the Mounties still haven’t issued a decision on the complaint filed April 25, 2012: “They can pretty much do what they want.”

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CRA Won’t Pay For Mistakes

The Canada Revenue Agency will not compensate Canadians penalized on their taxes after getting bad advice from agents. Members of the Commons finance committee yesterday criticized a 30 percent failure rate involving Agency responses to taxpayers’ questions.

“Honestly, it looks like it is not a success,” said MP Pierre-Luc Dusseault (Sherbrooke, Que.), New Democrat finance critic. “You don’t answer the phone, and when you do 30 percent of taxpayers calling in are given inaccurate information.”

“If a taxpayer believes they have been misinformed – and that might be up to 30 percent of taxpayers – and that causes them any harm, they have no recourse to prove it is your Agency that misinformed them. Do you undertake to compensate all Canadians who are financially harmed from receiving misinformation from your agents?”

Revenue Commissioner Bob Hamilton did not offer compensation. “When it comes to the quality of answers provided by the Agency, we are now focusing on personnel training,” said Hamilton. The Agency noted it does not keep audio tapes that callers might use in a tax appeal. “New technology will allow us to tape calls,” said Hamilton. “We don’t have that capacity now.”

The Auditor General in a November 21 report Call Centres – Canada Revenue Agency said taxpayers who dial 1-800 lines have only a 1 in 3 chance of speaking to a live operator, and of those who do, an average 30 percent of test questions drew an inaccurate response. Questions asked by auditors were similar to those used by the Agency for self-assessment, wrote auditors.

In one example, auditors asked: “My 2015 tax return was reassessed and I owe an amount. When should I expect collection action to begin if I’m objecting to the reassessment?” The correct reply is 90 days after an appeal decision. A total 52 percent of agents gave wrong advice, including: “It depends on the amount”; “It could take a couple of weeks”; and “Normally, collection action will continue when you file an objection.”

Commissioner Hamilton yesterday told the Commons finance committee the Agency knew of the problem. “They weren’t new issues that the Auditor General raised,” said Hamilton; “If anyone should complain about the Agency, it is possible of course to file an appeal.”

The committee rejected a motion by MP Dusseault for special hearings on the audit, including testimony from administrators who run nine Agency call centres. “We need to delve into this appropriately,” said Dusseault.

Conservative MP Tom Kmiec (Calgary Shepard) described the service as “awful”: “The most interaction a person will have with government in Canada is paying their taxes,” said Kmiec; “One of the fundamental things we do is review how government operates, and what it does.”

The audit concluded Canada had the worst 1-800 service of any comparable system surveyed in the U.S., U.K. or Australia. Of a total 53.5 million calls to 1-800 numbers, more than half – a total 29 million calls – were dropped due to busy signals, obliging taxpayers to make an average three calls a week to reach an agent.

By Staff