(Chapter 3—Status Report on Collecting Tax Debts—Canada Revenue Agency—Spring 2013 Report of the Auditor General)
Ottawa, 30 April 2013—The Canada Revenue Agency has made satisfactory progress in resolving important weaknesses identified in an audit conducted in 2006 by his Office, says the Auditor General of Canada, Michael Ferguson, in a Status Report tabled today in Parliament. The prior audit noted weaknesses related to understanding the makeup of the tax debt, strategies for managing tax collection, and case management tools. Status reports look at whether the government has made satisfactory progress in acting on issues raised in past audits.
“The timely collection of overdue accounts is one of the key components for preserving the integrity of the tax system,” said Mr. Ferguson. “The Canada Revenue Agency needs an effective collections program to ensure taxpayers meet their obligations.”
The audit found that the Agency has taken a number of measures to improve the way it collects tax debts, including providing collectors with new tools to support them in their work. The Agency has also changed the way some workload is handled so that work is assigned on the basis of when collectors are available, rather than by geographic location. This avoids delays caused by bottlenecks in the busier offices. The audit also noted that the Agency could enhance collection actions by reviewing all large accounts on a timely basis.
The audit also found that the Agency has carried out research and collected much of the data it needs to better understand the debt. However, it has not followed up on all its research recommendations and it does not track progress, making it difficult to know what remains outstanding.
“The improvements the Canada Revenue Agency has made have resulted in a significant increase in the amount of tax debt being collected,” said Mr. Ferguson. “However, given tax arrears of $29 billion, the Agency needs to continue to work to refine and improve its tools, such as the models it uses to determine which accounts to pursue first.”
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