Taxpayers’ ombudsman monitoring possible impacts of cuts
Delays in resolving disputes a major complaint, as agency reports a six- month backlog of 35,000 active cases
OTTAWA — The federal taxpayers’ ombudsman says he’s keeping a close eye on a sixmonth backlog at the Canada Revenue Agency in resolving tax disputes and how more than $ 300 million in cuts to the CRA is affecting tax services to Canadians.
Heading into tax season, federal taxpayers’ ombudsman Paul Dube says the most common complaint he hears from Canadians is a problem communicating with the CRA and finding someone at the agency to help them resolve their tax issues.
But as the tax collection agency cuts $ 313 million annually and more than 3,100 fulltime positions by 2017- 18, he says there are concerns among taxpayers that services will be eroded, following up on CRA decisions to close some counter services, discontinue the TELEFILE telephone-based service and eliminate the mailing of T1 packages to Canadians.
Secret briefing notes provided in July to new Revenue Minister Kerry- Lynne Findlay, and obtained by Postmedia News under access- to- information legislation, show there were 35,000 files — or a six- month backlog — at the CRA’s appeals branch, which resolves tax disputes and service complaints.
Dube said the large backlog is a major concern to him and something his office is closely monitoring, along with other potential service impacts from CRA cuts.
“Whether it’s appeals branch, or requests for taxpayers’ relief, delays are a big issue,” Dube said in an interview.
“That’s something we hear about as well and we look into individual cases about that all the time.”
The appeals branch is a key department because it’s the last chance to administratively resolve tax disputes between taxpayers, benefit recipients and the CRA.
If a taxpayer disputes an assessment on income tax, excise tax, Goods and Services Tax or Harmonized Sales Tax, they can file a notice of objection to have their assessment reviewed.
The appeals branch also reviews rulings and assessments on the Canada Pension Plan ( CPP) and employment insurance ( EI), as well as requests for financial relief from interest and/ or penalties.
The branch is also the liaison office between the taxpayers’ ombudsman and the CRA.
However, the briefing notes to the minister identify what the CRA calls “workload pressures” at this key branch that are delaying reviews of taxpayers’ files.
“A multi- year workload strategy has been developed to address the inventory level of tax disputes ( objections). Active inventory is approximately 35,000 files, which represents six months of backlog,” explain the briefing notes from July 2013.
“However, we currently have over 186,000 tax objections held in abeyance, the majority of which are pending the resolution of lead litigation files before the Tax Court of Canada.”
The briefing material says the tax collection agency was also planning the closing of counter services and cuts to the number
Sometimes the taxpayers and the CRA, they talk a different language. It’s such a big operation that they have their systems and own jargon, so sometimes it’s just hard for the CRA and taxpayers to communicate.
PAUL DUBE
FEDERAL TAXPAYERS’ OMBUDSMAN
of auditors, despite the CRA and former revenue minister insisting no auditors would be cut.
Dube said his office has been hearing from Canadians concerned about the larger impact of CRA cuts on services to taxpayers, including closing some counter services and the government’s decision to stop mailing the T1 tax forms package. The CRA has also cancelled the TELEFILE service due to declining usage.
“We’re definitely keeping an eye on that. We’re already starting to hear about some of the changes,” Dube said.
“We definitely heard concerns from taxpayers and tax professionals.”
The most common complaint the ombudsman’s office hears from taxpayers is trouble getting through to the CRA for help in resolving their concerns, even when they actually get someone on the phone, he said.
“Sometimes the taxpayers and the CRA, they talk a different language,” he said. “It’s such a big operation that they have their systems and own jargon, so sometimes it’s just hard for the CRA and taxpayers to communicate.”
The taxpayers’ ombudsman is a special adviser to the minister of National Revenue, but operates at arm’s length from the government.
The ombudsman’s job is also to uphold taxpayer rights and provide an independent and impartial review of unresolved complaints from taxpayers about service or treatment they have received from the Canada Revenue Agency.
However, by its mandate, the ombudsman is neither an advocate for the taxpayer nor a defender of the CRA.
A lawyer by training with a specialty in defending Charter rights, Dube was the first person appointed to the federal ombudsman position in February 2008, and was reappointed in 2011 for a five- year term.