Tax Pros: Canada’s Tax System Has Taken a Big Hit

Evelyn Jacks

Canada’s tax and financial pros weighed in enthusiastically on last month’s two-part Knowledge Bureau Report Opinion Poll in which we asked: "Do you believe Canada’s tax system based on self-assessment, has suffered under recent changes at CRA and by Finance Canada?" 71% said yes. Part 2 was this question: "If so, what is the one wish you have for tax reform?" The responses were very interesting:

Experienced Manitoba-based Tax Pro Stacey Bartel weighs in with examples: The CRA needs to find better ways to let clients access their accounts - especially for newcomers or first time filers there is no way to access the CRA online portal. This new restriction will now hinder accuracy of the all first time tax filers. I understand CRA’s push to online, however there needs to be ways for clients to access their accounts prior to first time filing. The CRA has worked diligently and very successfully in removing access to them and delaying issues. Here are a few examples

• This year the CRA sent out NOA’s to clients indicating that their refund check would follow, the refunds in most cases showed up 4-5 weeks after when their was no reason or rational for this other than sitting on clients money for more time, penalizing those who still want checks
• Last week we filed a 2023 Adjustment - The CRA did not fast track it and as of yesterday (July 2) the anticipated completion date is FEB 9, 2026 (7 Months)
• They are forcing all Businesses to Go online, yet there are many new to Canada doctors that have to wait over 1 year before they can get access to any online services, never mind appoint a representative.
• Phone wait time is completely unacceptable, even the Business desk at most times is 1-2 hours wait
• Their negotiated Work from home Policy does not work, babies Crying, being asked to hold during calls has to stop. Never mind that for years, taxpayers have been denied claiming use of home expenses because there was a workplace available to them, yet the CRA employee’s all receive T2200 allowing them to claim home expenses, when they work from home the couple of days per week

Hopefully under the new government and Minister of CRA, things will go back to normal.

From Cathy Taylor, Partner with First Choice Tax: As tax professionals we are providing a paid service, we do not have hours, months, etc. to wait for answers (from CRA). There should be a direct line to supervisor levels for our inquiries. They have a new progress tracker but it isn’t being used properly. Wait times are ridiculous for reviews. Mistakes are being made at their end but we have to request the fix, and the client has to wait while potentially receiving collection letters or (while CRA is) holding up refunds.

Time for a revamp. Service is terrible. They keep taking away our Rep services and some customers are just not ready for all electronic access yet and still need our help.

Tax Pro Jodi concurs: It has absolutely suffered. If we are going to be based on self-assessment, we can’t be penalized and wait months-years for returns to be processed because CRA decides they want to see the proof. I have multiple clients waiting on thousands of dollars of refunds that CRA is sitting on. Four months and still waiting on a refund because of a spousal support claim. Eight months waiting on a refund for a DTC transfer from a spouse. Seven months waiting on a refund for a trucker’s meal expense claim. The list goes on and on. As a client, who is a former CRA employee, said to me yesterday, “It’s embarrassing”.

Here's Susan Mackie from Sym Bookkeeping Service: The changes they are making to “Represent a Client” is absolutely ridiculous, there are so many clients that depend on Accountants, Bookkeepers, and Tax Specialist to assist them with changes, address, marital changes, bank account, issues with the CRA. I believe when we the business owners get reviewed each year that if the owners of the business have had no issues with the CRA and are in good standings, company, credit etc. The Representative should be able to fill in the authorization form(as in the past) so that we may assist the clients with their issues

Robert Litschel from PrairieVista Tax Service is more direct: Service at the CRA is a joke. Wait times are usually around 2 hours. Most of the time, the agents are not able to answer the questions anyway. I have had one client whose 2023 return was “finalized” only to have someone else review it later and want changes to be made. When told it had been finalized, they did not find any reference to that. Later, another agent said to disregard the information as it was done. What a runaround. Meanwhile my client is now paranoid about any correspondence from the government.

Add all the complications they are adding to tax preparers (who are just trying to do our jobs), it makes for a fine mess.

Colleen Prescesky adds: The CRA needs to improve turnover times on adjustments and reviews. We should not have to wait 7+ months for a response to a request. This is completely unreasonable!

Georgina Miller opines on CRA Training. Need better training which will result if all staff are within walking distance of each other in the office.

This from Patrizia Cappelli on CRA work ethic: CRA emloyees need to get back to work in an office where they can be monitored. Tired of seeing them in Costco line ups during the day. No one on the front lines. missing in action. Please send them all back to work.

Sherrie Blake agrees: The CRA needs to get back to the office so that when we call we can be transferred to a supervisor. I am still waiting since May 2022 for a call back. I also believe the system needs to be overhauled. It is so ridiculously complicated.

Margaret Kania wants to see more people at the My Service Canada to help people with their access to their accounts.

Ann-Margaret Laurin has an observation: CRA phone lines are hard to get through or long waits. Being transferred to the wrong CRA department, months even a year or more for adjustments to be completed - it all seems to be a little sloppy. If you feel CRA and our National Revenue dept. is a bit out of sorts, then you are correct. 

Last word goes to Kelowna-based tax specialist Amanda Zais who asks: Are Tax Pros being pushed out by CRA? Amanda also has some advice for lost productivity due to CRA issues on several fronts: Representative accounts should have the power to access individual & business accounts easier like before; put more compliance into place to be a Representative & ban those that are not compliant vs making it more difficult for taxpayers to seek help, especially when CRA is the root cause of many CRA errors. Throw not being able to get access, or having to spend time jumping through hoops to get access. First time filers are left to do what the first time filing with no CRA account access? Hope for the best? 

As Efilers, we can’t setup direct deposit anymore, which was a major outlet for scams. We can’t change personal information in their CRA account, so what is the risk now besides helping taxpayers navigate the complexities of CRA?

Tax preparers want to help taxpayers lives be easier, yet it feels like we are be pushed out of the industry.

Thanks to everyone who weighed in. Please comment on a very important poll this month which concerns the safety of Canadians’ investments:

A public consultation on whether the CDIC’s deposit insurance limit should be raised to $150,000 per deposit category is underway. Do you believe Canadian investors are at risk?