Calgary Herald

Revenue agency defends collection practices

- JASON FEKETE

OTTAWA — The Canada Revenue Agency maintains it will have the necessary resources to track down tax cheats and chase after $29 billion in uncollecte­d tax debt, despite facing significan­t funding and staffing cuts.

Senior CRA officials defended their tax-collection practices Tuesday to the House of Commons finance committee, a week after the federal auditor general highlighte­d the agency is owed $29 billion in uncollecte­d taxes.

Two broader CRA compliance programs, which include efforts on fighting domestic and internatio­nal tax evasion, will see more than $100 million and hundreds of staff cut from them over the next three years.

The official Opposition NDP grilled CRA officials Tuesday over how they expect to collect the owed tax revenue and fight tax evasion when the agency’s staffing and budget are being slashed.

“Won’t it make it even more difficult to achieve compliance with these cuts?” asked NDP national revenue critic Murray Rankin. “How are you going to deal with all of that money that is not being collected?”

Rankin highlighte­d there has been a decline in recent years in the number of CRA full-time employees in the internatio­nal audit and aggressive tax planning programs — before more than $300 million in additional budget cuts are implemente­d.

The auditor general, in a report released last week, said Canada’s tax agency has improved its ability to collect revenues, but still lacks a clear strategy to snare all the money owed to the federal government.

The CRA hasn’t implemente­d some of its own recommenda­tions to better collect debts, and may be letting risky files fall through the cracks, the Michael Ferguson said in his report.

Senior CRA officials, however, said Tuesday tax collection and enforcemen­t remain a priority and won’t be affected by job cuts, which will total more than 2,500 over the next few years.

The CRA is implementi­ng new measures and investing in collection programs to snare the $29 billion in uncollecte­d taxes, officials stressed.

“That is actually one of our priority projects,” said Mark Perlman, the CRA’s acting chief financial officer and assistant commission­er in the finance and administra­tion branch. “We are aware of this situation. We have put a number of measures in place.”

Yet, the CRA’s efforts on the file seem to be producing mixed results.

The Canada Revenue Agency’s total uncollecte­d tax debt has soared roughly 60 per cent to $29 billion in the last seven years.

 ?? Sean Kilpatrick/the Canadian Press ?? Auditor general Michael Ferguson said last week the CRA has let risky files fall through the cracks.
Sean Kilpatrick/the Canadian Press Auditor general Michael Ferguson said last week the CRA has let risky files fall through the cracks.

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