A recent report from the Auditor General highlights significant problems within the Canada Revenue Agency (CRA) call centers, revealing that both taxpayers and CRA agents struggle to understand the tax code. The report indicates that the CRA provided accurate responses to general individual tax inquiries only 17 percent of the time. This means that 83 percent of the time, taxpayers received incorrect information. For business tax questions, the accuracy rate was slightly better at 54 percent, but the completeness of those responses was only 31 percent.

The challenges extend beyond accuracy. Last year, only 32 percent of Canadians who called the CRA were able to speak with an agent. This has led to widespread frustration among taxpayers, with Finance Minister François-Philippe Champagne acknowledging that the issues with CRA call centers are "unacceptable."

The Auditor General's findings suggest that the root of the problem lies in the complexity of Canada’s tax code, which spans over two million words across 3,600 pages. This complexity has been compared to the length of the entire Harry Potter series. Chartered Professional Accountants Canada has also called for an overhaul of the tangled tax system, emphasizing that the current structure leads to confusion and numerous inquiries from taxpayers.

Despite an increase in the number of call center agents—1,000 more than five years ago—the service has deteriorated. In the 2019-20 fiscal year, 43 percent of calls were answered within the service standard of 15 minutes. By the 2024-25 fiscal year, this figure dropped to just 18 percent, even with 4,547 agents on staff. The CRA employs a total of 52,499 bureaucrats, which is a significant number compared to the Internal Revenue Service (IRS) in the United States, which has 90,516 employees for a larger tax base.

Critics argue that simply hiring more agents will not resolve the underlying issues. The government is currently considering expanding automatic tax filing for middle-class Canadians with straightforward tax situations. However, many question the wisdom of this approach, given the CRA's track record of providing incorrect information. If the CRA struggles to give accurate answers over the phone, concerns arise about its ability to handle automatic tax filings effectively.

The ongoing issues with the CRA underscore the need for a comprehensive review and simplification of Canada’s tax code. Without addressing the complexity of the rules, efforts to improve taxpayer services may continue to fall short, leaving Canadians frustrated and confused about their tax obligations.