The Canada Revenue Agency (CRA) wrote off a staggering $4.3 billion in taxes last year, a 55% increase from the previous year. Blacklock's Reporter says this surge in tax write-offs has raised questions about the agency's efficiency and accountability.According to the CRA, tax write-offs occur when "all reasonable means of collecting the debt have been exhausted" and there is no foreseeable ability to pay. However, Conservative MP Pat Kelly, who requested the figures, believes that the agency's handling of documents and tax files is a significant issue."The loss of tax files led to $109,849 in write-offs in 2018," Kelly noted. "In an age where data storage has never been more possible to control, it was surprising. But I have heard many, many anecdotal stories and complaints from taxpayers and tax preparers about the way the Agency handles and loses documents."Kelly also expressed concerns about the agency's service standards, stating that "every bit of evidence we see from people who work in the field is that service standards are getting worse, not better. It really has the appearance of an Agency without accountability."The CRA has acknowledged the need for improved procedures, and a 2021 audit highlighted the lack of parameters defining "timely" write-offs. The agency has promised to develop and implement new guidelines to address these issues.
The Canada Revenue Agency (CRA) wrote off a staggering $4.3 billion in taxes last year, a 55% increase from the previous year. Blacklock's Reporter says this surge in tax write-offs has raised questions about the agency's efficiency and accountability.According to the CRA, tax write-offs occur when "all reasonable means of collecting the debt have been exhausted" and there is no foreseeable ability to pay. However, Conservative MP Pat Kelly, who requested the figures, believes that the agency's handling of documents and tax files is a significant issue."The loss of tax files led to $109,849 in write-offs in 2018," Kelly noted. "In an age where data storage has never been more possible to control, it was surprising. But I have heard many, many anecdotal stories and complaints from taxpayers and tax preparers about the way the Agency handles and loses documents."Kelly also expressed concerns about the agency's service standards, stating that "every bit of evidence we see from people who work in the field is that service standards are getting worse, not better. It really has the appearance of an Agency without accountability."The CRA has acknowledged the need for improved procedures, and a 2021 audit highlighted the lack of parameters defining "timely" write-offs. The agency has promised to develop and implement new guidelines to address these issues.
