Canada’s Tax Collectors Say the System is Biased

August 20, 2018 Taxation in Canada

CRA CanadaOTTAWA – Canada’s tax workers are saying that their own system makes is skewed to benefit the corporates and the wealthiest taxpayers.

Late last week the Professional Institute of the Public Service of Canada, a public employee union, released the results of new research and survey into the perceptions of tax evasion of tax auditors working at the Canadian Revenue Agency (CRA).

The survey asked approximately 1 700 CRA auditors and other tax professionals their opinions and perceptions on various matters in regards to tax compliance, collection, and regulations in Canada.

More than four-fifths of the professionals agreed with the statement “tax credits, tax exemptions, and tax loopholes disproportionately benefit corporations and wealthy Canadians compared to average Canadians.”

Nearly half of respondents also said that CRA’s tax collection mandate has been compromised by political interference.

The Institute pointed out that the employees of the tax authority have front-line view and impression of how the tax system actually works, and how different rules translate to collected revenues.

The Union suggested that budget cuts for tax authorities have led to the current situation, as tax workers have less training and capabilities, while also making use of outdated tools and methodologies.