Ottawa Unveils 100-Day Action Plan to Tackle CRA Service Backlogs

Finance Minister François-Philippe Champagne announced on Tuesday a 100-day plan to reduce delays and improve service standards at the Canada Revenue Agency.

 

In a letter to the parliamentary finance committee posted on the social-media site X, Mr. Champagne called taxpayers’ current troubles in accessing assistance from the tax agency “unacceptable.”

 

He said the government has asked the CRA to take steps to fix the service woes, including reallocating and adding staff, expanding digital supports and piloting a new call-scheduling system.

 

The initiative leaves the CRA facing pressure from Ottawa to both address the long-standing service delays and find ways to reduce spending ahead of the 2025 federal budget expected this fall.

 

In July, Mr. Champagne asked federal cabinet ministers to find “ambitious” internal savings, trimming costs related to services provided directly by Ottawa.

Since May of last year, the CRA has cut its work force by more than 10 per cent, shedding more than 8,000 jobs, including many at call centres.

 

The Union of Taxation Employees, which represents CRA employees, has warned that cost-saving cuts would likely disproportionately affect call-centre personnel, who often work on contract, raising the risk of poorer service for taxpayers.

 

According to recent data, the number of call-centre workers has fallen from a COVID-19 pandemic high of 6,704 in the 2021-22 fiscal year to 4,133 as of June.

 

In an interview with The Globe and Mail, Mr. Champagne did not directly address whether the tax agency will now have to find cost savings without further reducing – or while possibly increasing – head counts at call centres.

 

However, the minister cautioned against comparing current staffing levels at the CRA to levels at the height of the pandemic, when the agency took an expanded role distributing COVID-19 benefits.

 

Luca Bonifacio-Proietto, a spokesperson for Wayne Long, the Secretary of State for the CRA and Financial Institutions, said 850 CRA call-centre employees with contracts set to expire in the fall recently saw their employment at the agency extended.

 

Mr. Champagne added the CRA will provide him with regular updates on progress implementing the 100-day plan.

 

The minister also said in the letter that he and Mr. Long, along with CRA officials, are ready to appear before the finance committee to provide updates about steps taken to address troubles with service delivery.

 

In a separate letter viewed by The Globe, Conservative members of the finance committee said Mr. Champagne failed to address the full scope of problems at the CRA.

 

While the House of Commons isn’t scheduled to reconvene until Sept. 15, the Conservatives’ letter urged the committee to hold a meeting “as soon as possible” to call Mr. Champagne to answer questions about the agency’s continuing issues.

 

The CRA says it’s trying to reduce pressure on call centres by making it easier for Canadians to find answers on their own online or through automated services for simpler issues. It estimates that a quarter of the calls it receives could be resolved without speaking to an agent.

 

But the agency also faces criticism for rerouting callers to automated services or disconnecting calls far too often. Currently, it handles 16 per cent of calls through agents, according to government figures.

 

Last month, François Boileau, the Taxpayers’ Ombudsperson, told The Globe it was too soon to know whether recent cuts to CRA staff have resulted in worse service.

 

But following the release of the minister’s letter, Mr. Boileau said via e-mail he was pleased to learn about the request for a 100-day plan.

 

Problems getting through to CRA agents, as well as the quality of information provided, continue to be a top source of complaints received by the Ombudsperson’s office.

 

Mr. Boileau said he was “especially glad” to hear that the plan would include a new call-scheduling system.

 

In its 2020–2021 annual report, Mr. Boileau’s office recommended the creation of a call-scheduling system that would allow taxpayers to make an online request for a callback from agents, without having to pick up the phone to do so. Service Canada already offers a similar service, according to Mr. Boileau.

 

But the CRA didn’t implement the recommendation, saying at the time that its technology could not support that feature, Mr. Boileau said.

 

“I still believe that such a system would greatly benefit taxpayers,” he said.

 

The Office of the Auditor-General of Canada is also currently conducting a review of the CRA’s call centres, eight years after it issued an analysis that lambasted the agency for excessive wait times and for often providing unreliable information. The new report is expected later this year.

 

 

 

 

 

With reports from Bill Curry and Meera Raman

This article was first reported by The Globe and Mail