The Canada Revenue Agency has “hit rock bottom” in terms of service delivery, Canada’s tax czar admitted Monday, though the federal revenue minister stopped short of promising that looming fiscal belt-tightening wouldn’t make matters worse.
Speaking to reporters after a meeting with top CRA officials in Ottawa, Revenue Minister Marie-Claude Bibeau acknowledged the agency’s persistent service problems while remaining noncommittal about protecting jobs during the government’s upcoming expenditure review.
“I’ve heard countless stories from Canadians waiting hours on the phone, only to be disconnected,” Bibeau said. “The agency has hit rock bottom on service standards, and we need to rebuild public trust.”
The frank admission comes as the Liberal government faces mounting pressure over the deteriorating quality of CRA services. Wait times for tax assistance calls have ballooned to an average of 87 minutes in 2025, up from 65 minutes last year, according to internal CRA documents obtained through access to information requests.
Taxpayer advocate groups have sounded alarms about accessibility issues since the pandemic, but the situation has worsened despite promises of improvement. Peter Fragiskatos, chair of the National Taxpayers Federation, told Mediawall that the combination of outdated technology and staffing shortages has created a “perfect storm” for service failures.
“When you can’t reach the very agency that controls your tax obligations, you lose faith in the whole system,” Fragiskatos said. “We’re hearing from small business owners who’ve had to hire consultants just to navigate basic compliance issues.”
The service crisis coincides with the government’s plan to find $15.8 billion in savings through program reviews, first announced in the spring budget. Treasury Board President Anita Anand has directed departments to identify potential spending reductions between 5% and 15% by November.
When pressed on whether CRA jobs would be protected given the acknowledged service shortfalls, Bibeau offered no guarantees, saying only that “service improvement will guide our decisions.” The Public Service Alliance of Canada, which represents thousands of CRA workers, warns that further cuts would be disastrous.
“We’re already stretched beyond capacity,” said Marc Brière, president of the Union of Taxation Employees. “Our members are burning out trying to meet impossible demands with fewer resources. Any job cuts would cripple the agency and hurt ordinary Canadians who just need help filing their taxes.”
The problems extend beyond individual taxpayers. Small business associations report that their members face extraordinary challenges getting timely answers on tax compliance questions. A Canadian Federation of Independent Business survey found that 73% of small business owners rated CRA service as “poor” or “very poor” in 2025, up from 61% in 2024.
In smaller communities, the impact is particularly acute. At a recent town hall in Belleville, Ontario, several seniors described feeling abandoned by the system. Margaret Wilson, 76, shared her frustration: “I’ve been filing taxes for over 50 years, but now I can’t get a human being to explain basic questions. Not everyone has internet access or understands these complicated forms.”
While the service crisis deepens, the CRA has struggled to implement its $2.1 billion IT modernization project, which has faced multiple delays since its 2022 launch. Internal documents suggest the agency’s legacy systems remain vulnerable to outages and security concerns, complicating service delivery.
Technology experts point to a deeper problem than just funding. “The CRA is trying to build modern services on outdated foundations,” explained Rohan Bhardwaj, digital government specialist at Ryerson University. “There’s been a fundamental disconnect between leadership’s vision and the technical reality of what’s possible with their current infrastructure.”
The federal government has made prior commitments to improve CRA service standards. In Budget 2023, $416 million was allocated specifically to reduce call wait times and improve digital services. However, subsequent Treasury Board directives to find savings have complicated these plans.
Parliamentary Budget Officer Yves Giroux has questioned whether the government can reconcile its conflicting goals. “There’s a disconnect between the promise to improve services and the mandate to cut spending,” Giroux said in July. “Something will have to give.”
Opposition critics have seized on the contradiction. Conservative revenue critic Larry Brock called the situation “a case study in Liberal mismanagement” during Question Period last week. “They promise better service while simultaneously planning to cut the very people who provide that service,” Brock said.
Meanwhile, NDP finance critic Daniel Blaikie suggested the government is setting up the CRA to fail. “If Canadians can’t get basic tax help, they’ll get frustrated with public services altogether, which plays right into the privatization agenda.”
Bibeau defended the government’s approach, pointing to investments in artificial intelligence and automated systems that she claimed would eventually improve efficiency. “We’re building a future-ready agency that can deliver better service with smarter resource allocation,” she said.
But for Canadians struggling with immediate tax issues, such promises offer little comfort. With the 2026 tax season just six months away, many accountants are already warning clients to prepare for another frustrating year.
“The real victims here are everyday Canadians,” said Rita Parikh, a tax clinic volunteer in Vancouver who helps low-income residents with their returns. “When the system makes it harder to comply with tax obligations, it’s the most vulnerable who suffer most.”
