Imagine failing a crucial exam with a dismal 17%. Would you reward that performance with more responsibility? That’s precisely what’s happening with the Canada Revenue Agency.
Despite a shocking track record of errors, the government is poised to expand the CRA’s power, granting them the ability to file taxes for even more Canadians. This move comes despite clear evidence of systemic failures within the agency.
Recent audits reveal a disturbing reality: the CRA provides accurate answers to basic tax questions only 17% of the time. Think about that – an 83% chance of receiving incorrect information. Even when it comes to business taxes, their accuracy rate barely scrapes by at 54%, earning a failing grade.
The difficulties don’t end with inaccurate information. Last year, Canadians attempting to reach a CRA agent by phone succeeded a mere 32% of the time. Getting through to someone, let alone receiving correct guidance, feels like winning a lottery.
To put it bluntly, the CRA struggles with fundamental tasks. Yet, the plan is to entrust them with the complex responsibility of automatically filing taxes for millions of citizens? It’s a proposition fraught with risk.
Even assuming a miraculous improvement in the CRA’s performance, automatic tax filing presents a fundamental conflict of interest. The government, naturally, seeks to maximize revenue. Taxpayers, understandably, aim to minimize their tax burden.
With the federal government already burdened by over $1 trillion in debt, the incentive for the CRA to err on the side of higher tax bills is undeniable. Expect your tax liability to increase if the CRA controls the filing process.
This expansion isn’t just about control; it’s about growth. The CRA is already a massive bureaucracy, boasting 52,499 employees – a 33% increase since 2016, adding 13,015 new positions. For comparison, the CRA has one bureaucrat for every 800 Canadians, while the U.S. IRS has one for every 3,800 Americans.
The proposed program will cost taxpayers $71 million simply to administer. This is money being diverted to fund a service that many Canadians already access for free through community tax clinics and readily available software.
Instead of expanding the CRA’s reach, the focus should be on simplifying the tax code itself. The Income Tax Act has ballooned to over 3,600 pages – comparable in length to the entire *Harry Potter* series. A simpler system would benefit everyone.
Rewarding failure with increased power is a dangerous precedent. The CRA’s documented struggles should be addressed before granting them even greater control over the financial lives of Canadians.
