The Workplace of the Taxpayers’ Ombudsperson (OTO) acquired the best variety of complaints in three years, in line with its newest annual report launched this week.
The OTO, which is chargeable for reviewing service-related complaints concerning the Canada Income Company (CRA), stated it noticed a 27 per cent surge in complaints within the 2025-2026 tax 12 months in contrast with the earlier 12 months. Complaints included processing delays with earnings tax kinds, extreme name wait instances and inaccurate or unclear info from brokers.
Jamie Golombek , managing director, tax and property planning, at Canadian Imperial Financial institution of Commerce (CIBC), stated that is precisely in step with what CIBC has been listening to from purchasers, advisers and accountants.
“The extent of frustration has reached almost an all-time excessive that I can bear in mind, apart from maybe throughout COVID,” Golombek stated. “The taxpayer is the shopper and taxes are a serious line merchandise for many households in Canada. To have the ability to take care of that in an open, clear and truthful method, I feel, is of important significance,” he added.
“The federal government must step up and both rent the appropriate folks, extra folks or simply work on a plan to have the ability to get again to Canadians quicker,” he stated.
The CRA took almost a 12 months (as much as 50 weeks) to course of advanced return changes, nicely surpassing its personal service customary of 20 weeks, which was launched within the 2024-2025 fiscal 12 months. Earlier this month, the OTO stated it could launch a scientific examination to determine the foundation causes behind these delays and ombudsperson François Boileau stated he hopes his workplace can have its findings prepared by the top of the 12 months.
Boileau stated the 50-week course of instances are unacceptable, including that when taxpayers don’t know what is going on with their information, they name the CRA, which can assist clog up the contact centres.
“It’s a vicious circle, in a approach,” Boileau stated. “The stress on the CRA is immense.”
Boileau stated extra public consciousness of his workplace might have elevated the variety of complaints it has acquired up to now 12 months as nicely.
Different widespread areas of concern included assortment actions allegedly not contemplating taxpayers’ particular person circumstances, delays skilled with the CRA’s Service Suggestions Program and issue accessing CRA accounts, in line with the report.
Boileau provided seven suggestions within the report for the CRA to enhance its providers, resembling permitting Canadians to request a callback with out calling a contact centre first, bettering the Examine CRA processing instances instrument and progress tracker in CRA accounts and assembly the wants of susceptible populations in its synthetic intelligence technique.
“The CRA welcomes the suggestions within the Ombudsperson’s annual report as a possibility to proceed bettering transparency and repair supply,” stated Nina Ioussoupova, a spokesperson for the company, in an electronic mail to Monetary Publish.
On its web site, the CRA has agreed to many of the suggestions barring the final, which recommends expanded eligibility for computerized tax submitting so that each one taxpayers in a easy tax scenario, not simply low-income people, can entry pre-filled tax returns of their CRA accounts. This can be a ministerial determination, the CRA stated on its web site.
Boileau stated he has not but acquired a response from the finance minister on this advice.
Golombek stated he thought the expanded eligibility for computerized tax submitting was “an amazing concept,” estimating that the CRA might in all probability pre-fill about 80 per cent of Canadians’ returns with the knowledge it already has.
Final fall, Finance and Nationwide Income Minister François-Philippe Champagne directed the CRA to implement a 100-day plan to resolve “unacceptable” ranges of service for Canadians, together with name centre points.
Ioussoupova stated in an electronic mail the CRA has since made progress to strengthen its providers, facilitate entry and scale back delays following the plan’s launch.
“We proceed to construct on the progress achieved below this plan by reworking and modernizing our operations, utilizing digital instruments, together with AI, automating processes, and streamlining our enterprise practices.”
The 2025 tax season was “horrible,” stated Marc Brière, nationwide president of the Union of Taxation Workers’ (UTE), which represents greater than 35,000 staff of the CRA.
Brière stated important workforce reductions severely impacted the company’s customary of service. About 10,000 staff had been let go, with about 3,500 staffers lower from the decision centres since Might 2024, he stated.
“Folks had been drowning within the contact facilities,” he stated, including that the CRA was answering about 5 per cent of calls final summer season and had about 300,000 T1 return circumstances within the backlog at one level. “The scenario was catastrophic.”
Nonetheless, he stated he believes the most recent tax season noticed enhancements after the CRA rehired 2,500 staff. It’s much less clear whether or not the CRA will lengthen these staff’ contracts, which expire in September, he stated.
Boileau stated he’s “cautiously optimistic” that the 2026-2027 12 months will go extra easily for the CRA.
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