Taxpayers Face Challenges After Receiving Poor CRA Advice

Canadians who inaccurately file their personal income taxes due to incorrect information from the Canada Revenue Agency (CRA) face significant challenges, as legal recourse is limited. A recent report from the office of Auditor General Karen Hogan revealed that CRA staff provided accurate answers to only 17 percent of tax-related inquiries made over a four-month period this year.

The report, released on October 22, 2025, highlighted concerns regarding the CRA’s focus on meeting scheduling demands rather than ensuring the quality of information offered to callers. This has left many taxpayers vulnerable, especially as they rely on CRA’s general information line for guidance on their tax obligations.

According to tax lawyer David Rotfleisch, the Income Tax Act places the onus on Canadians to file accurate tax returns, indicating that taxpayers “cannot and should not” depend on the CRA’s helpline, which he characterized as “notoriously wrong.” While Rotfleisch noted that taxpayers may appeal any penalties or fees incurred due to erroneous filings stemming from unreliable CRA advice, they will not face gross negligence penalties.

The report has drawn criticism from various quarters. Franco Terrazzano, federal director of the Canadian Taxpayers Federation, described the CRA’s performance as “horrendous,” calling for a simplification of the tax code. He emphasized that the current rules are “impossibly complicated” and difficult for taxpayers to navigate.

In light of these findings, many Canadians are left to question the reliability of the CRA’s guidance as they prepare their tax returns. The implications of inaccurate advice can be far-reaching, affecting financial stability and increasing the burden on individuals trying to comply with tax regulations.

As the CRA faces scrutiny over its operational practices, it remains to be seen how the agency will address these deficiencies and improve the accuracy of information provided to the public. The ongoing dialogue surrounding tax reform and better taxpayer support is likely to continue as stakeholders advocate for changes that could ease the burden on Canadians navigating the tax landscape.