Standing Committee on Finance (FINA) - December 12, 2024 - Commissioner's binder

Notice of meeting

https://www.ourcommons.ca/documentviewer/en/44-1/FINA/meeting-171/notice

Opening remarks

OPENING REMARKS FOR THE HONOURABLE MARIE-CLAUDE BIBEAU, MINISTER OF NATIONAL REVENUE

Finance Standing Committee

Appearance on carousel-type schemes, debt write-offs and service delivery by the Canada Revenue Agency

Ottawa, Ontario

December 12, 2024

Check against delivery

Mr. Chair, we are pleased to have the opportunity to discuss carousel-type schemes, the debt write-off process and the Canada Revenue Agency’s service delivery.

Protecting the integrity and fairness of Canada’s tax system is a top priority for the Government of Canada and the Agency. The Agency is committed to combating tax evasion and tax avoidance both domestically and internationally.

Historic investments by the Government of Canada have enabled the Agency to expand the scope of its audits, improve its comprehensive data sources and enhance its analytical approaches.

It has been able to hire specialized resources. In addition, this funding has enabled the Agency to leverage strategic alliances with its domestic and international partners.

The Agency is therefore in a much better position to detect and deter the most serious cases of non-compliance, including abusive schemes in Canada’s Goods and Services Tax/Harmonized Sales Tax (GST/HST) system, such as carousel schemes.

This deliberate focus on willful non-compliance enables the Agency to support its mandate to ensure that the tax system is fair for all.

The same is true for the Agency’s collection program, which — through innovation and the use of analytics and technology — also ensures a high level of results.

With respect to debt write-offs, it is absolutely important to note that the vast majority of accounts receivable are indeed collected over time. In addition, a write-off occurs when all of the Agency’s collection measures have been exhausted. And I can assure you that the Agency’s collection program is very rigorous before it gets to that stage.

The Agency’s collection strategy is designed to strike a balance between fiscal responsibility and maintaining a healthy portfolio.

That said, in the vast majority of cases, the debt remains in the taxpayer’s account. As soon as the taxpayer’s financial situation improves, active collection measures are then relaunched with the same rigour.

Finally, I would like to point out that in Canada, as abroad, all government institutions are currently under significant pressure in terms of services to the public.

In fact, it is mainly the Agency’s contact centres that are experiencing significant pressure.

In recent years, the Agency has recorded a record number of calls, largely due to the increase in the number of benefits and credits implemented to support the Canadian population during and since the COVID-19 pandemic.

This increase also includes services for people who are new to Canada. These people need a higher level of support to understand their new tax obligations and to learn how to access benefits and credits such as the Goods and Services Tax Credit, the Canada Carbon Rebate and the Canada Child Benefit.

That said, the Agency can improve its service delivery. Concrete solutions are already on the table, starting with the increased implementation of self-service options that are expected to help relieve the pressure on contact centres.

I will conclude by reminding you that the Canada Revenue Agency is a world-class tax and benefits administration. Its vision is to be helpful, fair and trustworthy, in keeping with its service philosophy that puts people first.

Furthermore, in the spirit of tax justice, which is a Canadian value, it is rigorously committed to ensuring that everyone, without exception, pays what they owe to the government’s coffers.

Mr. Chair, thank you.

Supporting documentation

Ministry inquiries

Senate Question 107 - Write-offs

House of Commons Order Paper Question Q-2684

https://parl-gc.primo.exlibrisgroup.com/discovery/delivery/01CALP_INST:01CALP/12163350910002616?lang=en

Senate Question 328

Senate Question 328 - Write-offs

Public Accounts of Canada 2023 Volume III Section 2 - Debts, obligations and claims written off or forgiven

Public Accounts of Canada 2023 Volume III Section 2

Write-Off Process - CVB

Write-Off Process

Combatting carousel schemes

Combatting carousel schemes

House of Commons Order Paper Question Q-2046

House of Commons Order Paper Question Q-2046 - Carousel fraud

News Release - The CRA invites taxpayers to share ideas for service improvements

The CRA invites taxpayers to share ideas for service improvements

ABSB key program volumetrics

ABSB key program volumetrics - Calendar year 2023 & 2024 (EN/FR)

CVITP and ITAVP Data

CVITP and ITAVP Data

Issue notes

Write-Offs

Write-Offs (Overall)

Key messages :

• The Canada's income tax system is based on self-assessment. Under a self-assessment system, taxpayers are responsible for ensuring the information they report on their tax returns is accurate and complete. We know that most taxpayers file and pay their taxes on time. Over time, the CRA collects almost all tax from those who do not pay voluntarily.
• The CRA has a strong collections program that, through innovation and the use of analytics and technology, assures a strong level of collection results. For example – on average over the last 5 years 96.3% of our yearly production was paid, however the intake is outpacing our yearly production which is increasing the tax debt.
• The increase in write-offs in the last year is a normal outcome of the growing tax debt. This also indicates that we are collecting more money than in previous years.
• The CRA continues to develop and implement collection strategies to improve its capacity to manage tax debt and avoid new debt from accumulating.
• The CRA works collaboratively with taxpayers to resolve their outstanding tax debts in a mutually satisfactory way. The CRA makes every effort to reach a mutually acceptable payment arrangement based on verified ability to pay.
• Once the CRA has exhausted all avenues of collection, the CRA will deem the debt to be uncollectible, at which point it will be administratively written-off. This could occur in the following cases:
  • Bankruptcy
  • The taxpayer does not have an ability to pay:
    • The taxpayer's current financial situation including assets and income has been reviewed and it has been determined that the taxpayer's situation has no prospects in future collection, or they are insolvent.
    • Collections actions against known sources of income and assets have been completed and exhausted, and in the case of an insolvency, no further payments to creditors are expected.
  • The taxpayer cannot be located in spite of exhaustive efforts to determine the taxpayer's current location and avenues of collection.
  • The collection limitation period has expired and the debt becomes “statute-barred” under the Income Tax Act.
• Write-offs are a normal part of business accounting.
• Amounts written off represent a small portion of total receivables, and the vast majority will be collected over time. As at March 31, 2023, receivables totalled $207.1B. During last fiscal year (2023-2024), $4.4B (2.1%) was written off, including $0.7B relating to bankruptcies.
• Over the last 10 years, revenues administered by the CRA on behalf of the Government of Canada, provinces, territories and First Nations increased by 76% (from $376B to $663B) while write-offs increased by 31% (from $3.3B to $4.4B).

When does CRA deem a debt uncollectible / written-off?

Key messages :

• The Canada's income tax system is based on self-assessment. Under a self-assessment system, taxpayers are responsible for ensuring the information they report on their tax returns is accurate and complete. We know that most taxpayers file and pay their taxes on time. Over time, the CRA collects almost all tax from those who do not pay voluntarily.
• The CRA has a strong collections program that, through innovation and the use of analytics and technology, assures a strong level of collection results. For example – on average over the last 5 years 96.3% of our yearly production was paid, however the intake is outpacing our yearly production which is increasing the tax debt
• The CRA continues to develop and implement collection strategies to improve its capacity to manage tax debt and avoid new debt from accumulating.
• The CRA works collaboratively with taxpayers to resolve their outstanding tax debts in a mutually satisfactory way. The CRA makes every effort to reach a mutually acceptable payment arrangement based on verified ability to pay.
• Once the CRA has exhausted all avenues of collection, the CRA will deem the debt to be uncollectible, at which point it will be administratively written-off. This could occur in the following cases:
• Bankruptcy
• The taxpayer does not have an ability to pay.
• The taxpayer's current financial situation including assets and income has been reviewed and it has been determined that the taxpayer's situation has no prospects in future collection, or they are insolvent.
• Collections actions against known sources of income and assets have been completed and exhausted, and in the case of an insolvency, no further payments to creditors are expected.
• The taxpayer cannot be located in spite of exhaustive efforts to determine the taxpayer's current location and avenues of collection.
• The collection limitation period has expired and the debt becomes “statute-barred” under the Income Tax Act.

Does writing off a debt release the taxpayer from their obligation to pay off the debt?

Key messages :

• Administratively writing off a debt does not release the taxpayer from their obligation to pay off the debt, with the exceptions of non-recoverable debts such as debts that have reached collection limitation period and individuals discharged under the Bankruptcy an Insolvency Act (BIA).
• Any significant improvement in the taxpayer’s financial situation will result in efforts to collect the debt once again.
• The debt will remain on the taxpayer's account and, should credits or other income become available, they are applied to the outstanding debt, and active collections may be reinitiated.
• Additionally, since a person may have multiple accounts (for example a corporation may have a corporate account, a GST/HST account, and a payroll account, plus others, potentially), a credit on one account may be applied to a debt on another related account.

Why did the CRA have large increases in amounts determined to be uncollectible and written-off in 2023-24?

Key messages :

• Write-offs are a normal part of business accounting.
• Unpaid tax debts represent a small portion of the total receivables, and the vast majority of accounts receivable will be collected over time. As at March 31, 2023, receivables totalled $207.1B. During last fiscal year (2023-2024), $4.4B (2.1%) was written off, including $0.7B relating to bankruptcies.
• For 2023-2024, the CRA had large accounts that were determined to be uncollectible and written-off in accordance with the Financial Administration Act (FAA) as:
• The amount of uncollectible debts, and the ratio of uncollectible debts vs amounts collected, fluctuates year over year.
• During the pandemic, the CRA paused certain collections activities, reducing both amounts collected and written-off. Despite higher uncollectible in 2023-2024, money collected surpassed previous years, and the ratio uncollectible debt to collected amounts decreased from 2018-19 and 2019-20. 

What is the legislative authority for write-offs?

Key messages :

• The Minister of National Revenue, or an officer authorized by the Minister, may write-off debts under the Financial Administration Act (FAA). Pursuant to subsection 25(3), the write-off does not affect any right of the CRA to collect the debt. For instance, should the person's financial situation change, or they become entitled to a credit owed by the CRA, it can be applied against their written-off debt.
• Pursuant to subsection 178(2) of the BIA, if an individual or corporation is bankrupt and their debts are uncollectible. As a result, related write-offs cannot be recovered by the CRA.

How does CRA cancel/forgive or waive penalties and interest?

Key messages :

• The CRA administers legislation, commonly called the taxpayer relief provisions, that gives the CRA discretion to cancel/forgive or waive penalties and interest when taxpayers cannot meet their tax obligations due to circumstances beyond their control.
• These can include financial hardship, actions of the CRA such as delays, extraordinary circumstances such as illness, and other circumstances outside the taxpayer's control.
• The terms "cancel/forgive" and "waive" have two distinct meanings and are defined as follows:
• The term "cancel/forgive" refers to a penalty or interest amount that is assessed or charged for which relief is granted, in whole or in part, by the CRA.
• The term "waive" refers to a penalty or interest otherwise payable by a taxpayer for which relief is granted by the CRA before the amount is assessed or charged to the taxpayer.
• It should be noted that the taxpayer relief provisions only apply to penalties and interest, not the tax portion of a taxpayer's debt.

How does CRA ensure transparency regarding write-offs?

Key messages :

• Information relating to debts, obligations and claims written off or forgiven are itemized under each relevant federal act, and are available online under the Public Accounts of Canada, Volume III, Section 2 for each fiscal year.
• Information relating to 2023-2024 debt write-offs will be published in the upcoming Public Accounts of Canada 2023-2024, which is expected to be tabled in Parliament in the Fall of 2024.
• Information relating to 2024-2025 debt write-offs will be published in the Public Accounts of Canada 2024-2025.

What restrictions surround CRA providing information on write-offs?

Key messages :

• Due to confidentiality provisions in the laws it administers and the Privacy Act, the CRA is unable to provide certain information - like the amount of the single largest write-off.
• Specifically, sections 241 of the Income Tax Act (ITA) and 295 of the Excise Tax Act (ETA), prohibit the release of “taxpayer information” and “confidential information”, including information which could identify a person to whom it relates, either directly or indirectly.
• Additionally, under the Privacy Act, information under the control of the CRA that is “personal information” as defined in s. 3, must not be disclosed.
• “Taxpayer information” about a taxpayer who is an individual, qualifies as “personal information” under the definition found in s. 3 of the Privacy Act. Therefore, disclosure of information that is both “personal information” and “taxpayer/confidential information” is considered in light of s. 241 of the ITA, s. 295 of the ETA and the·Privacy Act.
• An amount owed by an individual, notably one described as the ‘largest single’ or ‘single median’ write-off or forgiveness/waiver in a given year is “information relating to financial transactions” as well as an “identifying number, symbol or other particular assigned to the individual” pursuant to ss 3(b) and (c) of the Privacy Act and the disclosure of such an amount creates a risk that the person to whom it relates could be identified, particularly, when used in conjunction with publicly available information.

 

Carousel Tax Fraud

Overall

Key messages :

• The CRA remains committed to combatting aggressive GST/HST schemes that circumvent the spirit of Canada's tax laws.
• Carousel schemes involve GST/HST registrants colluding in order to claim unwarranted refunds and intentionally avoid complying with our tax laws.
• To combat this type of abusive non-compliance, our strategies include early detection, prevention, and verification measures, and when appropriate, criminal investigations.
• Previous budget investments in business intelligence, auditors, and data analytics tools will continue to allow the CRA to better target potential areas of non-compliance.
• Building on a strong international network, the CRA's approach is responsive to lessons learned by other countries who face the same challenges.
• Since 2017-2018, more than $1.7 billion has been identified through audits that specifically target carousel schemes and other aggressive GST/HST schemes.
• The confidentiality provisions of the Excise Tax Act prevent the CRA from discussing specific taxpayer information and ongoing audits or litigation.
• The CRA continues to work with partners in Canada and internationally to develop innovative solutions to improve our compliance approaches to address these schemes.

What are “carousel” schemes and what is CRA doing to combat them?

Key messages :

• The CRA remains committed to combatting aggressive GST/HST schemes that circumvent the spirit of Canada's tax laws.
• The carousel scheme involves GST/HST registrants colluding together to claim unwarranted refunds to intentionally avoid complying with our tax laws.
• Previous budget investments in business intelligence, auditors, and data analytics tools will continue to allow the CRA to better target potential areas of non-compliance.
• Building on a strong international network, the CRA's approach is responsive to lessons learned by other countries who face the same challenges.
• Since 2017-2018, more than $1.7 billion has been identified through audits that specifically target carousel schemes and other aggressive GST/HST schemes.
• The confidentiality provisions of the Excise Tax Act prevent the CRA from discussing specific taxpayer information and ongoing audits or litigation.
• The CRA continues to work with partners in Canada and internationally to develop innovative solutions to improve our compliance approaches to address these schemes.
• The courts provide Canadians with a further independent review of disputed issues, and court decisions serve to clarify the law or resolve disputes between the CRA and taxpayers. As this matter is before the courts, and by virtue of the confidentiality provisions of the Acts we administer, the CRA cannot comment on details of this case. Publicly available information on this matter may be obtained by contacting the court registry.
• However, we can share that these schemes involve some of the most complex litigation before the Tax Court of Canada (TCC).
• Currently, the CRA has over 70 files pertaining to these schemes in the various courts.
  • There are three cases alone, within two industries, worth approximately $1.4 billion in assessments in the TCC.
  • The litigation is highly publicized, complex, time consuming, and costly not only to the CRA, but to our partners at the Department of Justice (DOJ) as well.
• The CRA, in its ongoing work to tackle carousel schemes, also finds that registrants are prepared to challenge their assessments through procedural attacks against the CRA in the Federal Court, for example through tort actions and judicial reviews, as well as raising Insolvency protection through Superior Court proceedings. 

What steps is CRA proactively taking to combatting aggressive GST/HST arrangements?

Key messages :

• Carousel schemes are continuously evolving and often involve complex networks of multiple entities. This type of scheme can be very difficult to detect as the books and records are often manufactured to look real and can involve immense paper trails of invoices transiting through, at times, hundreds of entities.
• When these types of threats or suspicious activities are identified, the CRA has various programs and measures to address them. From early detection and prevention, to audit and criminal compliance measures, the CRA is continuously evolving its methods to ensure it has the right tools to tackle this aggressive non-compliance. 
• The CRA has dedicated programs that identify, deregister and safeguard GST/HST accounts that are registered as a result of identity theft, as well as programs that verify commercial activity before the initial GST/HST return is filed. This allows us to close suspicious accounts before a return is filed and an unwarranted refund is paid. These programs are based on enhanced risk assessment tools designed to identify and prevent suspicious entities from infiltrating our filing population.
• The CRA strives to prevent payment of unwarranted refunds while promptly issuing eligible GST/HST refunds.
• In 2021, the CRA received funding from the Government of Canada to increase its investments in relationship matching and machine-learning tools. We aim to prevent and address GST/HST schemes, including carousel schemes, as early as possible in our filing population. These ongoing enhancements allow the CRA to identify suspicious transactions and uncover patterns of behaviour earlier and more accurately.
• The CRA cannot comment on potential legislative changes, as that is the purview of the Department of Finance.

What investments has the CRA made to better detect these aggressive GST/HST arrangements?

Key messages :

• The CRA has made significant investments in the detection and prevention of these aggressive GST/HST arrangements by expanding business intelligence and data analytics tools that identify and address wilful non-compliance.
• We have enhanced our compliance activities of registrants through reviews, examinations, audits and criminal investigations where appropriate.
• The ability to respond to threats in real time helps the CRA prevent suspicious entities from infiltrating our filing population, while ensuring everyone meets their filing obligations.
• As these schemes are often multifaceted, we are engaged in numerous collaborations with our tax administration partners.
• Some of these activities include recurring engagements with our international partners to identify emerging risks and best practices, consultation with the Department of Finance, and a close partnership with the Department of Justice to provide support through the audit and litigation process.

How does CRA tackle these schemes once they have been identified?

Key messages :

• Complementary to the CRA’s increased investments in data tools, the focus of our programs is to identify suspicious patterns as early as possible and prevent wilfully non-compliant entities from infiltrating our systems.
• The CRA has audit programs that focus primarily on schemes based on suspicious transactions. Funding received from the Government of Canada in 2021, allowed the CRA to staff additional resources dedicated to combatting GST/HST schemes. As part of the approach for this program, a variety of tools are used to conduct audits to verify the transactions and activities of entities that may be participating in a scheme.
• The purpose of an audit performed by the CRA is to determine the correct civil tax liability. Throughout the audit process, the CRA uses the inspection and requirement powers of the Excise Tax Act for the purpose of establishing a correct assessment, including the application of civil penalties.
• Since 2017-2018, more than $1.7 billion has been identified through audits that specifically target carousel schemes and other aggressive GST/HST schemes.

When and how does CRA initiate criminal investigations related to these schemes?

Key messages :

• When there is suspicion of criminal activity, referrals are made to the CRA’s Criminal Investigations Program (CIP), so that these cases can also be investigated and prosecuted through a criminal law framework. While both civil audits and criminal investigations will tackle carousel schemes, they are two distinct processes.
• The CRA’s CIP investigates significant cases of tax evasion, tax fraud, and other serious violations of the tax laws, and where appropriate, refers cases to the Public Prosecution Service of Canada (PPSC) for possible criminal prosecution.
• Various sources of information may lead the CRA’s CIP to initiate a criminal investigation, such as internal referrals from various audit programs and information from various law enforcement agencies. Once a referral is received, it is evaluated to determine if a criminal investigation is viable and appropriate given the totality of all the circumstances.
• The CRA focuses on investigations that will have the greatest impact on compliance, and these include the investigation of GST/HST schemes. A criminal investigation involves many steps such as gathering evidence, interviewing taxpayers and witnesses, executing search warrants, and analyzing evidence.
• After a case has been referred to the PPSC, they will independently review the evidence and decide whether to initiate and conduct a prosecution on behalf of the Federal Crown.

Fraud

Overall Statement

Key messages :

• The protection of taxpayer information is of the utmost importance for the CRA. At the CRA, we recognize that the confidence and trust Canadians (both individuals and businesses) place in us is essential. It’s the cornerstone of Canada’s voluntary tax system.
• In today’s increasingly digital world, safeguarding sensitive information against constantly evolving threats is critical for every organization. The CRA works continuously to strengthen our defences and stay ahead. As threat actors adapt their practices, so do we.
• The CRA has built a multi-layered approach to security, with robust systems and tools in place to monitor, detect and investigate potential threats, and respond quickly when they occur.
• This starts with personnel screening, employee training and document handling procedures such as markings and email encryption to make sure sensitive information is handled securely. We perform regular risk assessments and internal audits to ensure that internal processes are secure.
• In addition, the CRA has dedicated teams to address issues related to unauthorized access and breaches of taxpayer information, and performs regular risk assessments and audits to ensure its processes are secure.
• We’ve also increased the number of resources dedicated to combat fraud and the unauthorized access, use, and disclosure of taxpayer information, and we continue to invest in security and enhance our technologies, processes and controls.
• In addition to a strong defense, the CRA has implemented proactive measures to protect the personal information of Canadians. These efforts include:
  • Multi-factor authentication: requiring a one-time passcode every time you access the CRA sign-in services.
  • Revoking at risk CRA user IDs and passwords: routine checks to identify CRA user IDs and passwords that may have been compromised. The CRA revokes the identified CRA user IDs and passwords (protecting their account from bad actors using these credentials) and provides impacted individuals with the information they need to regain access to their account.
  • Mandatory email on file: email notifications when changes have been made to their account, including changes to their address and direct deposit information.
  • Identity Protection Services: A single point of contact for individual taxpayers to resolve identity theft concerns.
• Together, these defensive and offensive measures demonstrate the CRA’s commitment to protecting Canadians’ information and maintaining the integrity of its systems.

Fraud-Prevention Measures

Key messages :

• The CRA has zero tolerance for fraud. The vast majority of Canadians are honest, and the CRA has effective systems in place to manage the small percentage of people who submit fraudulent claims. Canada’s tax system is based on voluntary compliance and self-assessment. The confidence and trust that individuals and businesses have in the CRA are the cornerstones of Canada’s tax system.
• The CRA has robust systems and tools in place to identify, protect, detect, and respond to potential threats, and to neutralize threats when necessary.
• The CRA combines advanced data analytics and business intelligence gathered from many sources, including law enforcement agencies and financial institutions, and leads to support these efforts.
• No organization is immune from fraudulent activity. As soon as fraudulent activity is discovered, the CRA acts quickly and uses every tool at its disposal to stop any further fraudulent activity and recover any money fraudulently or illegally obtained.
• The CRA continues to adjust and improve its security measures in response to an ever-evolving threat environment. As scammers adapt their practices, the CRA has adjusted to introduce new measures and controls to address suspicious activity. Dedicated subject matter experts work diligently to counter the activities of threat actors.
• The CRA takes the abuse of Canada’s tax laws seriously and encourages members of the public to contact the CRA’s Leads Program. The CRA Leads Program gives the public the opportunity to come forward and anonymously report suspected cases of non-compliance with the tax laws administered by the CRA.

How does CRA work to stop and prosecute fraudsters?

Key messages :

• As soon as fraudulent activity is discovered within the CRA, the CRA acts quickly and uses every tool at its disposal to stop any further fraudulent activity and recover any money illegally obtained.
• All security incidents are assessed and investigated by the CRA, and where warranted, referred to the CRA’s Criminal Investigations Program (CIP), or the Royal Canadian Mounted Police (RCMP).
• The CRA’s CIP investigates significant cases of tax evasion, tax fraud and other serious violations of the tax laws, and these investigations can include privacy breaches and identity-based crimes.
• When tax fraud involves a privacy breach of personal taxpayer information, the matter can be referred to the CRA’s CIP for criminal investigation.
• Where appropriate, the CIP refers cases to the federal prosecutor, the Public Prosecution Service of Canada (PPSC), for possible criminal prosecution.
• In addition to court imposed fines and/or jail sentences, convicted taxpayers have to pay the full amount of tax owing, plus related interest and any penalties assessed by the CRA.
• While we are unable to provide details regarding specific investigations that we may or may not be undertaking, we can highlight two specific cases that have concluded in the courts (NOTE - All case-specific information above was obtained from the court records):

1. Mr. Chun Zhu aka Ted Zhu of Calgary, Alberta pleaded guilty on January 29, 2021, in the Alberta Provincial Court, to one count of fraud over $5,000, and one count of obtaining and using another's identity to commit an indictable offense.

   The CRA investigation revealed that, as early as March 2018, Zhu started gathering personal information from individuals who applied on fake job postings he set up. Zhu used the information he gathered from these applications to electronically prepare, print out, and file as many as 317 personal tax returns. These returns claimed unwarranted tax refunds totalling more than $760,000 which he attempted to have deposited into bank accounts controlled by himself.

   Zhu was sentenced on October 1, 2021 and given an eight month sentence for fraud and six month sentence for using another's identity to commit an indictable offense. These two sentences are to be serviced concurrently, followed by 18 months of probation.

2. The CRA announced that on June 23, 2022, Georgette Young, Angela MacDonald, Nadia Saker, and Lydia Saker, of Nova Scotia were each sentenced in the Nova Scotia Supreme Court. On February 24, 2022, the three sisters, their mother (Lydia Saker), and their ten companies were found guilty of ten counts of fraud and ten counts of claiming false GST/HST refunds.

   Young was sentenced to four years in prison and fined $1,997,601, MacDonald was sentenced to three years in prison and fined $961,186, Nadia Saker was sentenced to three years in prison and fined $493,620 and Lydia Saker was sentenced to two years in prison and fined $335,099.

   A CRA investigation revealed that between January 1, 2011, and July 31, 2015, the four women filed false GST/HST returns reporting over $56 million in sales and requesting over $3.6 million in refunds in an attempt to defraud the CRA. The women fabricated false invoices, some of which included over $16 million in marketing and advertising, $6.4 million in cookbooks and food products, $5.5 million in catering and $3.7 million in children's clothing. During this period, the investigation determined that only five of the ten companies had active bank accounts, and the actual business activity of those five companies was in the range of $60,000.

   The four women filed Input Tax Credits (ITCs) creating refunds of $3,628,805. Of the $3,628,805 in fraudulent refunds requested, the four women received $275,960, and an additional $81,399 was allocated to amounts owed to the CRA. When the CRA began to audit the filed returns, the four women doubled down on their fraud by supplying fictitious invoices and amending claims in an attempt to hide the massive scale of their fraud.

Background

• It is important to note that there are various types of privacy breaches that occur across Canada, in both the public and private sectors. There is a difference between instances where the CRA experiences a security breach, and when a privacy breach occurs outside of the CRA, and that information is then used to gain unauthorized access to the CRA’s systems through fraud. For example, when a company and/or organization’s confidential credentials are stolen, these criminals then receive the confidential information that is then used to gain unauthorized access into personal and/or business accounts, where they then change personal and/or corporate information (i.e. bank accounts, email addresses, authorized representatives), submit false returns, and receive false refunds.

How does CRA work with global partners to stop fraudsters?

Key messages :

• Countries around the globe are facing a common threat posed by increasingly complex and innovative forms of tax crime. Therefore, the CRA recognizes the importance of strengthening its domestic and international public-private partnerships (PPP).
• For example, the CRA is an active member of the Joint Chiefs of Global Tax Enforcement (J5). The J5 exists to combat tax and other financial crimes that affect the jurisdictions of Australia, Canada, the Netherlands, United Kingdom and the United States. One of the J5’s greatest successes has been the creation of the Global Financial Institutions Partnership (GFIP).
• The GFIP is an international public-private partnerships, seeking to tackle tax fraud and wider associated tax crime by bringing together the J5 Chiefs, and senior leaders in financial crime compliance from major international banks, financial intelligence units, banking representative bodies, and influential senior leaders from wider organizations.
• In the last year, the GFIP has worked together to review and collaborate on various projects, including a typology paper relating to identity theft. The GFIP has helped to strengthen our partnerships both domestically and globally, and closely connected the financial ecosystem of the financial institutions, financial intelligence units and the CRA to thwart further breaches from occurring.
• This ongoing and robust partnership was further solidified when the CRA, as a member of the J5, recently hosted the GFIP Summit in Ottawa, on October 22-23, 2024, and provided even more visibility on key issues, such as identity theft, with our Canadian partners. By continuing to work more closely with the financial sector, the safeguarding of data and funds will be better protected against criminals.
• In addition, in 2019 the CRA joined the International Public Sector Fraud Forum (IPSFF), a group consisting of the Five Eyes countries which coordinates efforts to define, measure, and combat public sector fraud.

CRA's Proactive Approach to Combat Fraud

Key messages :

The CRA has been upfront with Canadians on the different threat vectors it faces. It has put energy and resources forward to inform Canadians about scams and fraud, and provide information on what they can do to protect themselves.

Web pages:

• The CRA has a dedicated webpage on scams and fraud. It lists the types of scams to watch out for, including identity theft and fraudulent tax returns. It provides Canadians with warning signs of a scam and provides advice.
• The CRA

Proactive communications:

• Social Media: Between October 1, 2023 to October 31st, 2024, 57 (1 post includes French/English equivalents) posts regarding cyber security were made on the CRA’s social media channels.
• The content includes:
  • Tips to keep accounts safe (updating passwords, creating good passwords, monitoring accounts, clearing cache, keeping information up to date, etc.)
  • Regular revocation notifications with instructions on how to regain access to My Account
  • Security measures the CRA has in place (Multifactor authentication, PINs, etc.)
  • General Cybersecurity awareness (phishing scams, spotting threats on social media)

Tax tips:

• Since January 2020, the CRA has issued 23 tax tips, designed to keep Canadians, media outlets, and stakeholders informed about the CRA’s measures to protect taxpayer information.
• These tips also offer practical steps taxpayers can take to enhance the security of their own information.

Taxology Podcast:

• The upcoming episodes 4 and 5 of the podcast will be addressing scams and fraud episode. It will provide listeners with information and tips on how to protect their personal information and identify potential threats.
• The podcast is expected to launch early in the new year (2025).

Advertising initiatives:

• Escape rooms
  • The escape room is an immersive experience that invites participants to “Spot the scams” as a way of educating them on recognizing common scams involving the Government of Canada name.
  • The escape room launched at the end of March 2024 and ran until end of May 2024 visiting shopping malls in Ottawa, Montreal, Dartmouth, Mississauga, and Burnaby.
  • A second round ran from September to October 2024 in shopping malls in Moncton, Edmonton, Calgary, Saskatoon, and Winnipeg.
  • The escape room received positive local media coverage in each market from a variety of media outlets including CTV, CBC, La Presse, Le Journal de Quebec, Global and CityNews. This also included live TV segments on the morning shows in Edmonton and Winnipeg.
• Be scam smart:
  • Since 2020, the CRA collaborated with other Government of Canada (departments to lead a multimedia advertising campaign – Be Scam Smart.
  • The goal of this campaign was to increase awareness of common scams using the CRA or Government of Canada name. The media used included television, social media (e.g. Facebook, Twitter, YouTube, Snapchat, TikTok), web banners on news sites (i.e. CBC and Radio-Canada) and Search Engine Marketing (SEM). 

CRA's Transaction Data

Key messages :

Individual tax revenue

• In 2023-2024, the CRA administered over $430B in individual tax revenue.
• The CRA processes over 32 million individual tax returns in a year.
• This represents approximately $1.6B in revenues and 124K transactions per business day.
• Over the last tax season, the CRA issued $43B in payments relating to individual tax returns (19M transactions).

Benefits

• In 2023-2024, the CRA issued close to $55B in benefits (federal and provincial) through close to 214M transactions.

Contact centre planned & ongoing improvement efforts

Key messages :

• The CRA is always looking to provide our best, and most secure services to Canadians, helping people to have the information they need when they need it. This commitment includes making sure people have what they need to file their taxes each year.
• We understand that individuals often look to the CRA for help in understanding their tax and benefits situation, and that long wait times when calling or working with the CRA are frustrating.
• That is why we are continuously working to make calling the CRA a better experience, and to improve self-service options that eliminate the need to call us altogether. Recent improvements include:
• Extending contact centre hours of service to provide equal service to people in different time zones across Canada. CRA contact centres are now open Monday to Friday from 6:30 a.m. to 11:00 p.m. ET and 7:30 a.m. to 8:00 p.m. ET on Saturdays.
• Updating the progress tracker in My Account so you can check the status of your file or processing times for a request for the disability tax credit, taxpayer relief or for a formal dispute.
• Making it easier to register and use the CRA’s sign-in services through the document verification service, which allows people to use government-issued photo identification to register for digital services such as My Account, My Business Account and Represent a Client and get immediate access to their account.
• Making live contact centre wait times available online on Canada.ca so you can determine the best time to call. During periods of exceptionally high call demand, live wait times may be taken down temporarily, and you can continue getting help with common questions by visiting Canada.ca/cra-contact.
• Constantly improving our online services helps people find the information they need without having to call us. This makes it easier for people who need to call, whether they prefer to or have a complex situation, to speak to an agent.
• At the CRA, we are committed to continually assessing and improving our services to meet the diverse needs of taxpayers and benefit recipients. By seeking feedback from people, we strive to make our programs and services more streamlined and client-centric, all while safeguarding the privacy and security of personal information and improving overall satisfaction.
• Throughout the fall, the CRA is holding public consultations on service to hear from individuals, non-professional representatives, and tax intermediaries from across the country. From September 25 to December 13, 2024, individuals and non-professional representatives have the opportunity to share feedback on their experiences interacting with CRA services through an online questionnaire.

What is contributing to delays in CRA’s responses to correspondence from Canadian taxpayers?

Key messages :

• The CRA is committed to responding to taxpayers as soon as possible, while ensuring that responses are accurate and carefully written.
• The CRA's responses are customized to individual taxpayers, whose situation require a careful and thorough investigation and analysis.
• Responses take longer to prepare based on the complexity of the correspondence received.
• The CRA aims to deliver the highest level of service possible to taxpayers by continuing to improve its services with the goal of being trusted, fair, and helpful by putting people first.
• The team works diligently every year to respond to the influx of correspondence received during tax season in a timely manner.

Contact centre funding & workforce

Key messages :

• The CRA continuously re-evaluates its contact centres to ensure it finds the right balance between providing Canadians the quality of service they expect, and fiscal responsibility of taxpayer dollars.
• Over the past few years, the number of calls to the CRA has increased and calls tend to be longer than they were prior to the pandemic. From April to September 2024, the CRA call centres received 19.9 million calls.
• Contact centre agents provide assistance on a wide range of topics, which has an impact on the duration of calls and a downstream effect on the wait times to access an agent.
• On days when benefit and credit payments are sent out, it is common for the CRA to experience a temporary increase in call volumes. As a result, contact centre wait times may periodically be higher than normal.
• Budget 2024 provided an additional $336 million over two years to maintain call centre resources and improve efficiency. This funding was used in part to extend a number of employee contracts beyond tax season, to continue to support Canadians and businesses and ensure trained agents continue to be available to assist callers through the CRA's enquiries contact centres.
• The contact centre workforce currently consists of approximately 3500 employees. Budget 2024 will allow the CRA to increase that number by approximately 1100 for the upcoming income tax filing season. This will be done with the focus of rehiring experienced, previously trained agents whenever possible.

Projections for FY 2024/2025:

• Call demand: 25.0M
• Full-time Equivalents (FTEs): 4250
• Total program budget: $329M

Dropped calls

Key messages :

• The CRA is aware that there has been an increase in the number of complaints.
• The Canadian population has grown very quickly, a large number of new programs have been implemented, and there is an increase in security risks. Consequently, there are longer wait times and a number of calls abandoned.
• Current technology only allows a certain number of callers to wait “in line” for an agent. When the line gets too long there is a much higher risk of dropped calls and a poor service experience.
• The CRA is committed to provide the best possible service to Canadians. The CRA will continue to implement its service improvements with the goal to lower call volume and handle time, while enhancing the client experience.
• Dropped or disconnected calls can also occur due to various other reasons including human error, technical issues on the CRA's side, and technical issues on the caller's side.
• In order to reduce the negative impact of dropped calls, the CRA allows its agents the option of phoning an individual back if the call ends before the agent finishes providing the assistance requested.

Incorrect / misleading responses by CRA call centre agents

Key messages :

• The CRA values the quality and accuracy of the responses it provides to Canadians, and understands how important it is to provide clear and helpful information to all taxpayers.
• Contact centre agents receive extensive training to ensure they can provide accurate and helpful responses to taxpayers.
• Additionally, the CRA has quality monitoring programs in place to ensure that its service remains of the highest standard.
• The CRA is committed to consistently improving its service to better meet the needs of Canadians, and that includes providing feedback and/or coaching to agents when necessary, and continuously updating agent procedures so that responses are accurate, clear, and consistent.
• Since the 2018-2019 fiscal year, the quality and accuracy of the CRA contact center responses has risen steadily, with responses scoring 95% for quality and 94% for accuracy for fiscal year 2023-2024.
• Overall, Canadians have a positive view of their experience when calling the CRA, with satisfaction results averaging around 77% over the past 5 years.

Increased call duration

Key messages :

• The focus on call quality and “people-first” coupled with the increased measures for security purposes, increased complexity in the type of call (both technically and emotionally) the CRA receives, and a shift in demographics (immigration, aging population, vulnerable population, etc.) have all contributed to an increase in call lengths.
• The CRA is introducing a number of technological initiatives that will speed up authentication, and help agents find the answers to the callers questions faster.
• Starting in February 2025, callers who are registered with MyAccount will be able to receive a code on their phone number to authenticate them rather than answering all of the knowledge based questions which will reduce call time and frustration for the caller.

Hard-to-Reach / Vulnerable Populations

Key messages :

• The Government of Canada prioritizes the unique needs of Canada’s most vulnerable populations, and the CRA is doing its part by ensuring those individuals are able to access tax benefits and credits in an easy and timely manner.
• The CRA has been working with ESDC to identify additional opportunities to improve the services provided to individuals requiring a high level of support to access benefits.
• To this end, CRA and ESDC have established a national working group to:
  • discuss increased collaboration and coordination of outreach activities,
  • streamline programs and services
  • determine gaps and propose solutions and recommendations.
• The CRA has been implementing some of the recommendations, designed to address tax filing challenges faced by vulnerable Canadians:
  • Complement and enhance ESDC’s current mailing activities supporting Canada Learning Bond (CLB) sign-up events by expanding to include information on a wide range of Government of Canada programs and benefits, such as SIN, tax-filing, tax benefits and credits, including the Canada Child Benefit, passport, and Canada Pension Plan / Old Age Security.
  • The phone service referral pilot -– CRA’s Client Assistance Referral and Enquiry Service (CARES) agents and ESDC Outreach Support Centre (OSC) CRA  and ESDC outreach phone agents employees across Canada identify and directly transfer callers any individuals in need of assistance to the other service provider.
  • Outreach event collaborative space - Create shared master contact lists and calendars of ESDC and CRA outreach events and activities to help promote collaboration (including Canada Learning Bond/Registered Education Savings Plan).  

Improving Outreach to New Canadians

Key messages :

• The Government of Canada prioritizes the unique needs of Canada’s most vulnerable populations, including newcomers,  by ensuring those individuals are able to file their taxes and access the benefits and credits they are entitled to in an easy and timely manner.
• The CRA is taking proactive steps to ensure vulnerable populations, including newcomers to Canada, are aware of, and able to access, the benefits and credits they are entitled to by developing plans and products tailored to their needs.
• In March 2023, the CRA completed comprehensive research and consultation with newcomers and the organizations that support them. Those findings informed the development of a national tax and filing benefit strategy for newcomers which aims to improve tax literacy, create awareness, and support tax filing among this segment of the population.
• In the summer of 2023, the CRA began implementing the initiatives outlined in the strategy, which are designed to address the tax filing challenges faced by newcomers. This work will continue through to 2025.

Outreach to Northern and Indigenous Communities

Key messages :

• The CRA is committed to improving efforts to reach Northern and Indigenous communities by implementing a national Filing and Benefits Strategy for Indigenous Peoples.
• The strategy aims to cultivate trust with these populations, enhance awareness of and access to benefits and credits, and increase cultural competence within the CRA.
• The strategy prioritizes the delivery of tailored outreach and benefit services to Indigenous Peoples, with the goal of increasing tax filing rates and the uptake of benefits and credits that they are entitled to.
• The CRA is using business intelligence tools to identify underserved populations in Northern and Indigenous communities and make data-driven program decisions.
• The CRA continues to build on its partnerships with other federal government departments and agencies with the aim of developing seamless and integrated service experiences for Northern and Indigenous communities. 

Automatic Tax Filing

Key messages :

• The Government of Canada is taking concrete actions to support lower-income and vulnerable people.
• The CRA currently offers eligible lower-income and vulnerable individuals a free, easy, and secure automated telephone service to file their taxes called SimpleFile by Phone.
• This service enables individuals to auto-file an income tax and benefit return quickly and easily by answering a series of short questions over the phone.
• In February 2024, the CRA issued more than 1.5M SimpleFile by Phone invitations to eligible lower-income and vulnerable Canadians to file their 2023 income tax and benefit returns.
• The CRA is on track to increase the number of invitations for SimpleFile by Phone to 2M in February 2025.
• Additionally, in July 2024, the CRA expanded its SimpleFile phone, paper and digital options to all provinces and territories as part of a pilot, where over 500,000 invitation letters were sent to lower-income and non-taxable individuals who had either never filed a tax return, or had a gap in their filing history.
• The CRA will be meeting with its advisory group on automatic tax filing in the next few weeks, followed by consultations with stakeholders, community organizations, tax professionals and Canadians on the next phase of Canada’s automatic tax filing plan beyond 2025.

2024 Service Consultations

Key messages :

• CRA's 2024 service consultations officially launched on September 25, 2024.
• The CRA is engaging with individuals, non-professional representatives, and tax intermediaries to hear about their recent service experiences and get feedback on ways the CRA can continue to improve its programs and services via three consultation methods:
• An online questionnaire is available to the public from September 25 to December 13, 2024.
• The in-person (8) and virtual (12) consultation sessions, with primarily hard-to-reach populations (youth, seniors, housing insecure and newcomers), started on September 26. By November 20, 2024, the CRA will have visited 5 different cities (Gatineau, Toronto, Whitehorse, Okotoks, Sherbrooke).
• The virtual sessions (4) with tax intermediaries are currently scheduled between November 21 and December 10, 2024.
• While we cannot comment on the results of the public consultations as they are still ongoing, a full analysis of the results will begin once the consultations conclude on December 13, 2024.
• The "What We Learned" report will be published on Canada.ca in March 2025.

Background

Questionnaire uptake (November 8, 2024)

Quick facts

• 1800 completed questionnaire
• 53.25% completion rates
• 3380 total responses, including partial responses
• 178 respondents (4.85%) screened out because they don’t meet the screening criteria

Respondents by role

• 79% responded as individuals
• 14% responded as professional tax intermediaries
• 7% responded as non-professional representatives

Regional representation

• Ontario: 683 respondents (35.08%)
• British Columbia: 480 respondents (24.65%)
• Alberta: 377 respondents (19.36%)
• Quebec: 70 respondents (3.60%)

Consultations schedule by locations & client segments

8 in-person sessions – Individuals

• Sept 26 & Nov 20 – Gatineau, QC (Youth, Seniors)
• Oct 2 & 3  - Toronto, ON (Newcomers, Housing insecure/modest income)
• Oct 9 - Whitehorse, YK (Seniors)
• Nov 5 & 6 – Okotoks, AB (newcomers, general population)
• Nov 12 – Sherbrooke, QC (general population)

12 virtual sessions – Individuals

• Oct 7 & 22 - Youth
• Oct 15 & 23 - Seniors
• Oct 16 & 29 - Housing insecure/modest income
• Oct 17 & Nov 19 - General population
• Oct 21 - Non-professional representatives
• Oct 30 - Newcomers
• Nov 13 - Housing insecure/modest income
• Nov 14 - Seniors

4 virtual sessions – Tax intermediaries

• November 21, 2024
• November 28, 2024
• December 5, 2024
• December 10, 2024

Issues regarding T1135

Key messages :

• The CRA has conducted a thorough review of all its T1135 Foreign Income Verification Statement procedures and systems and found no evidence of any delays, irregularities, system outages, failures or malfunctions by EFILE software or CRA T1135 E-filing processes.
• Form T1135 must be filed by Canadian resident individuals, corporations, partnerships, and certain trusts that, at any time during the year, own specified foreign property costing more than $100,000.
• The deadline to file a T1135 is on or before the filing-due date of the taxpayer's income tax return.
• The late filing penalty is calculated at $25 a day up to a maximum of 100 days.
• Based on the CRA review, there were no software or system issues that would have prevented a taxpayer or their representative from filing Form T1135 on time.

COVID-19

COVID-19 Benefits Compliance Measures

Key messages :

• As part of its response to the COVID-19 pandemic, the Government of Canada selected an attestation-based approach to enable the rapid delivery of COVID-19 benefits to millions of Canadians.
• This meant that claimants self-declared the information they provided when they applied for benefits, understanding that the CRA would verify this information at the time of filing and/or at a later date.
• The Government was clear throughout the pandemic that while there would not be any penalties for those who applied for these benefits in good faith, individuals would have to repay those benefits they were not entitled to.
• In her report in December 2022, the Auditor General recommended that $12.1 billion of COVID-19 benefits payments be investigated further. The CRA has committed to review 875,000 cases and estimates that, once completed, it will have reviewed approximately $17.5 billion in individual benefit payments.
• The CRA is transparent with its compliance work. It provides quarterly progress reports presenting statistics on the number of post-payment verifications conducted for the COVID-19 benefit programs to the House of Commons Standing Committee on Public Accounts (in response to Recommendation 5 of its 2023 Report on Specific COVID-19 Benefits). As well, post-payment compliance results for the COVID-19 business subsidies are available at Compliance Snapshot.
• In July 2020, the CRA started to assess high-risk applications before issuing payments. This was followed by post-payment verification reviews starting in January 2022. Compliance efforts are slated to continue until 2025.
• The CRA adopts a risk-based approach, focusing its efforts to review files with the highest likelihood of ineligibility or significant potential recovery amounts.
• The CRA blocked approximately 700,000 high-risk individuals from applying, resulting in $378 million in halted payments and preventing an estimated $5 billion in future benefits from being issued.

COVID-19 Overpayment Debt Repayment

Key messages :

• The CRA is sensitive to the hardship that Canadians may still be facing as a result of the COVID-19 pandemic.
• The CRA will work with Canadians to resolve any debt they may have by entering into a mutually satisfactory payment agreement, based on their ability to pay.
• Ability to pay is determined by reviewing the taxpayer’s income and expenses.
• In response to the needs of Canadians, following the COVID-19 pandemic, payment arrangements have been expanded to allow the repayment of debt over a longer period of time.
• Every taxpayer’s situation is different. The CRA encourages taxpayers who find themselves owing money to contact the CRA at their earliest opportunity to discuss their situation and the options available to them. 
• As of September 30, 2024, over $2.4 billion of COVID-19 overpayment debts has been recovered ($2,483,169,688). The CRA will continue its efforts to recover the current balance of $9.18 billion as of September 2024.

COVID-19 Offsets

Key messages :

• Since the commencement of recovery efforts, the CRA has been committed to ensuring that our approach to recovery is flexible, rooted in empathy, and responsive to the situations Canadians face and does not create undue hardship.
• The practice of applying tax refunds and certain benefit payments (like the GST/HST credit) against existing tax and government debt is a standard practice of the CRA to collect outstanding taxpayer balances.
• Following this standard practice, the CRA has been applying personal income tax refunds to recover outstanding debt from COVID-19 benefits since October 2022, and other credits, such as the GST/HST credit, since February 2023.
• These efforts are aligned with the recommendations made by the Auditor General in the report titled; Report 10 - Specific COVID-19 Benefit.
• If the use of a tax refund or benefit and credit payment towards an individual’s debt results in significant financial hardship, individuals should contact the CRA immediately to discuss their options - even if they already have a payment plan in place.
• Similar to the COVID-19 benefit programs for individuals, business credits are used to offset COVID-19 wage and rent subsidy debts.

CRA employees who inappropriately received CERB

Key messages :

• In June 2023, the CRA launched an internal review process to identify all CRA employees who inappropriately applied for and received the Canada Emergency Response Benefit (CERB) while employed with the CRA.
• Approximately 600 employees were identified for further investigation.
• As we are approaching completion of our internal review process, we are providing a final update:
  • 330 employees who inappropriately received the CERB are no longer with the CRA as a result of this review.
  • 185 cases did not result in an end of employment. Of these cases, 40 resulted in other disciplinary actions, such as suspensions. The remaining cases resulted in administrative actions, such as end of review as the employee was no longer with the CRA at the time of the review, or they were found to be a victim of identity theft.
  • 135 other employees were found to have been eligible for the CERB, and no disciplinary actions were applied as a result of this review. Being a current employee of the CRA does not automatically mean an individual was ineligible for the benefit. The CRA employs individuals with a variety of employment profiles, such as temporary and student contracts; as such, some individuals were eligible to receive the CERB.
• Each review was handled on a case-by-case basis and had its own outcome. In cases where misconduct was found following a review, disciplinary actions taken were relative to the seriousness of the misconduct. As well, any CRA employee who inappropriately applied for and received the CERB is required to repay the amounts if they haven’t already done so.
• While the vast majority of the cases have now been reviewed, there are a very small number of cases, including employees on medical or extended unpaid leave, which will take additional time to complete.
• The confidence and trust that Canadians have in the CRA is of the utmost importance to the CRA. The actions of some should in no way undermine the honesty and integrity of the tens of thousands of CRA employees who work every day in an exemplary manner to serve Canadians.

CRA Spending Review

Key messages :

• The CRA undertakes regular reviews of its financial resources to ensure they are in line with the CRA’s strategic direction and Government of Canada priorities. Making informed decisions and sound investments allow the CRA to successfully deliver our programs, benefits, and services to Canadians.
• Ongoing reviews of government spending are a key part of managing public finances in a prudent and responsible manner. We are focused on balancing current demands with the need to ensure sustainable operations moving forward.
•  As the Government of Canada continues its focus on funding key priorities for Canadians, and we transition away from pandemic operations, we must also ensure that resources within the CRA are focused on supporting our key priorities.
• Over the coming months, adjustments and decisions may need to be made that are in the best interest of the CRA’s long-term sustainability. While this may require some difficult choices, we are committed to ensuring our operations remain aligned with both government priorities and fiscal responsibility. We anticipate that these restrictions will be relaxed over time, as our financial position stabilizes.
• As such, on November 7, 2024, the CRA introduced new control measures that will be in place until further notice:
  • Restrictions on certain hiring activities, such as stopping permanent external appointments, permanent promotions, new term appointments for non-critical workloads, new student appointments, student bridging and incoming Interchange agreements;
  • A temporary increase in the HR delegation authority to Assistant Commissioner level;
  • A freeze on non-critical overtime and an increase in the approval level of overtime; and
  • An expectation that employees will take their vacation and compensatory leave during the year, to eliminate the need to cash out unused leave.
• The CRA notified both the Public Service Alliance of Canada (PSAC) Union of Taxation Employees (UTE) and the Professional Institute of the Public Service of Canada (PIPSC) Audit, Financial and Scientific (AFS) Group of these new measures.
• The CRA is continuing to review its spending, to ensure we are operating efficiently and are able to fulfill our commitments to Canadians. Further measures may be required as we continue this review. All employees will be notified if any further measures are put in place.

CRA Term Employee Contracts

Key messages :

• Throughout the pandemic, the CRA received a large increase in resources to deliver crucial COVID programs. As a result of that added capacity, we were then able to help administer a number of new initiatives, such as the Canadian Carbon Rebate and the interim administration of the Canadian Care Dental Plan. As we transition away from pandemic operations, the CRA safeguards responsible use of public funds while providing quality service to Canadians.
• As a result, the CRA has decided to release approximately 600 term (meaning contract or temporary) employees early across the CRA, in accordance with the terms of employment contracts. The affected term employees have been notified with four weeks notice, regardless of the length of service. The contract end date for these term employees will be December 13, 2024.
• We carefully reviewed our term workforce and decisions were made to reduce term employees where we had the flexibility in program areas to do so. The CRA prioritized maintaining the workforce for the tax filing season.
• The CRA notified both the Union of Taxation Employees (UTE) of the Public Service Alliance of Canada (PSAC) and the Audit, Financial and Scientific (AFS) Group of the Professional Institute of the Public Service of Canada (PIPSC) of this decision.
• We recognize that the early end of term notification can surprise many employees and managers. There is no easy way to share this news, and we recognize that this can cause stress especially so close to the end of the year.
• The CRA does not take these decisions lightly. We continue to analyze how to manage our operations within our approved budget while limiting human resources impacts.

Safeguarding Protected Information at CRA

Key messages :

• We do not comment on ongoing investigations so as not to compromise the integrity of those investigations.
• The CRA is fully committed to protecting the integrity of the tax system for the benefit of Canadian taxpayers. This includes safeguarding protected information which would be beneficial to fraudsters. 
• We take seriously our responsibility to prevent any harmful distribution of protected information and we are dedicated to upholding the integrity of the tax system.
• At all times, the CRA is focused on ensuring that all employees adhere to their duty of loyalty and confidentiality to the CRA, the Government of Canada, and all Canadians.
• Like any organization, the CRA makes it clear to employees that only designated spokespersons can speak on behalf of the CRA, a point which was reiterated in a recent memo to employees.
• Employees have several options for expressing concerns they see in the workplace, some of which offer anonymity:
  • To a manager or supervisor;
  • To the CRA’s Internal Affairs Division, which can be done anonymously if by mail or fax;
  • To the CRA Anonymous Reporting Line;
  • To the CRA’s Internal Disclosures Office, which is not anonymous but protects the identity of the employee from being released to any respondent(s) under the Public Servants Disclosure Protection Act; or
  • Directly to the Public Sector Integrity Commissioner.

Tax Evasion and Avoidance

Key messages :

• The CRA is actively pursuing individuals and businesses that engage in tax non-compliance or tax fraud in Canada and abroad.
• Those who wilfully choose not to fulfill their tax obligations can face serious consequences including criminal charges, prosecution, court imposed fines, jail time, and a criminal record.
• With enhanced data sources, the CRA is well-positioned to target those wealthy individuals who deliberately push, or exceed, the limits of acceptable tax planning to evade or avoid taxes and side-step reporting obligations.
• With continued budget investments, and a strong international network of tax treaties, it’s now harder than ever to hide money offshore.
• The CRA’s increased collaboration with domestic and international partners ensures that multinationals and participants in the digital economy pay the taxes they owe.
• The CRA continues to use tools, such as enhanced business intelligence and advanced data analytics to improve risk assessments, and to detect and address the most serious instances of non-compliance.
• The CRA is working diligently with its partners in the Department of Finance Canada, and the Department of Justice Canada, to evaluate and propose new and enhanced tax legislation and policy that will help close tax loopholes used by tax promoters and advisors to help their clients avoid paying the appropriate amount of taxes.

RVs [Recreational Vehicles] and the Excise Tax Act

Key messages :

• The CRA cannot comment on ongoing or planned compliance measures.
• The CRA is responsible for interpreting and administering the legislative provisions under the Acts it administers.
• I can provide general information on how the place of supply rules are treated under the Excise Tax Act (ETA), including for recreational vehicles (RVs).
• These rules would apply to all supplies where there is an importation into Canada by a manufacturer who has signed an agreement with the constructive importer (dealer) to choose this GST/HST treatment. This approach applies to every industry in the country.

CRA's Priorities

Key messages :

• The CRA’s top three business priorities for 2024-25 are to:
  • Deliver seamless client experiences and tailored interactions that are digital first;
  • Combat aggressive tax planning and tax evasion; and
  • Strengthen security and safeguard privacy.
• Our first priority focusses on providing high quality, secure services to Canadians, including contact centre services.
  • The CRA’s major contact centres are focused on the future while continuing to provide the best service possible within a changing environment.
  • Budget 2024 provided $336 million over two years, starting in 2024-25, to maintain call centre resources and improve efficiency.
  • This funding falls short of what would be required to achieve the Service Standard target of answering 65% of calls within 15 minutes.
  • The CRA is implementing a plan to improve access to contact centre service by reducing call volumes, reducing call handle time, and moving to a new telephony platform.
  • The plan focusses on continuing to improve digital services and operational efficiencies, and leveraging advanced technological solutions.
• Our second priority is about compliance, including to combat aggressive tax planning, tax avoidance and tax evasion that allows the wealthiest to avoid paying the taxes that they owe.
  • This is part of the Mandate the Prime Minister gave to the Minister of National Revenue in December 2021.
  • The Government has invested significantly in these efforts, including in the 2020 Fall Economic Statement, Budget 2021 and Budget 2022.
  • The CRA is achieving significant results: as of the end of the 2023-24 fiscal year, it had generated $595 million from the Fall Economic Statement Initiatives, $384 million from the Budget 2021 initiatives, and $358 million from Budget 2022 initiatives.
  • The CRA continues to sharpen its focus on its compliance activities and to improve the use of data, technology and business intelligence to gain operational efficiencies.
• Our third priority is about security. Being the holder of one of the largest repositories of personal and financial information in Canada, the CRA ensures that all information is protected through effective controls.
  • The Government has invested in security at the CRA. Budget 2021 invested $330.6 million over five years  and $51.2 million ongoing, in new technologies and tools that match the growing sophistication of cyber threats, and to ensure the CRA’s workforce has the specialized skills to proactively recognize and respond to threats to better safeguard Canadian data.
  • These investments ensure that the CRA limits potential cyber-attacks and decreases the likelihood of data breaches.
  • Furthermore, in 2022, the Canada Revenue Agency created a Security Branch, bringing together security programs to further safeguard the CRA's people, information and assets.
  • The Agency cannot expect zero fraud in the face of motivated and well-resourced adversaries. We follow an internationally-accepted approach of identifying fraud risks, protecting against those risks, and understanding that sometimes fraud risks will materialize. We know fraud exists and it’s important that we detect it; it would be concerning if we found none. Finding it means we can take appropriate action to respond.
  • The CRA continues to focus on balancing service and security by using advanced technology, well-informed personnel, and proactive monitoring. 

FINA Committee Information

Mandate

The mandate of the House of Commons Standing Committee on Finance is to examine and enquire into all matters referred to it by the House of Commons, to report from time to time and, except when the House otherwise orders, to send for persons, papers and records, as it operates in accordance with its mandate.

As part of its mandate, the Standing Committee on Finance is empowered to study and report on all matters relating to the mandate, management and operation of the Department of Finance and the Canada Revenue Agency.

The Standing Committee on Finance also has the responsibility to consider budgetary policy.  In particular, commencing on the first sitting day in September of each year, the Committee is authorized to consider and report on proposals regarding the budgetary policy of the Government, commonly referred to as “pre-budget consultations”.  The ensuing Committee report on pre-budget consultations is traditionally tabled in the House of Commons in early December.

In each parliamentary session, the Committee’s work may include:

• pre-budget consultations
• briefing sessions by departmental officials on federal programs
• examination of planned expenditures of the Department of Finance and the Canada Revenue Agency (i.e., main, interim and supplementary estimates)
• a review of Order in Council appointments
• a review of Monetary Policy Reports of the Governor of the Bank of Canada
• a review of the Minister of Finance’s economic and fiscal update
• consideration of proposed legislation
• special studies on topics within the Committee’s mandate

Members

Yvan Baker

Liberal – Etobicoke Centre (Ontario)

Biography

Yvan Baker has been the Member of Parliament for Etobicoke Centre since 2019.

Formerly Yvan was the Member of Provincial Parliament for Etobicoke Centre. As MPP, Yvan successfully advocated for the tunneling of the Eglinton West LRT, saved Silver Creek School for children with special needs, helped to stop the GTAA from permanently diverting flights over the Etobicoke community and secured expansions of local hospitals and schools.

Prior to being elected, Yvan taught Master of Business Administration students at the Schulich School of Business at York University. During that time Yvan also operated his own management consulting practice. Prior to starting his own practice, Yvan was a consultant with The Boston Consulting Group in Toronto and New York. He has consulted to clients in the public sector as well as Fortune 500 companies in a range of sectors including financial services, retail, energy, and telecommunications.

Yvan has volunteered for a variety of charitable and humanitarian organizations, including Leave Out Violence as Board Director; the Emerging Leaders Network where he worked with civic leaders on projects promoting Toronto’s economic and social prosperity; and Global Grassroots where he supported emerging women leaders in Rwanda on projects that address issues such as lack of access to water, domestic violence and health education. In recognition of his service to the community Yvan was awarded the Queen’s Diamond Jubilee Medal.

Yvan holds an MBA from the Tuck School of Business at Dartmouth College and a BBA from the Schulich School of Business at York University. Yvan is trilingual and is fluent in English, French and Ukrainian.

Rachel Bendayan

Parliamentary Secretary to the Finance Minister
Liberal – Outremont (Quebec)

Biography

Whether it is the fight against climate change, stricter gun control or more support to families, Rachel is fighting for the priorities of her constituents as the Member of Parliament for Outremont.

Since the very beginning of the COVID-19 crisis, Rachel is hard at work supporting entrepreneurs across the country. Her daily exchanges with small business owners serve not only to advise them on how to access federal government supports but also to get their feedback on how these can be adjusted and improved to better respond to their needs and realities on the ground.

Rachel was first elected as the Member of Parliament for Outremont in a by-election in February 2019. For close to 10 years, Rachel practiced law at Norton Rose Fulbright in the fields of litigation and international arbitration, specializing in international trade law. While in private practice, Rachel also taught at the Université de Montréal's Faculty of Law. Mom to an active toddler and deeply engaged in her community, Rachel has a strong connection to the families she represents in the Montréal neighborhoods of Outremont, Mile End, and Côte-des-Neiges.

Joanne Thompson

Liberal – St. John's East (Newfoundland and Labrador)

Biography

Joanne Thompson was elected the Member of Parliament for St. John’s East in September 2021. M.P. Thompson is Chair of the National Seniors Caucus.

Born and raised in St. John’s, Joanne is committed to social justice, entrepreneurship, and supporting communities. Her passion for helping others was ignited at a young age when she started volunteering at St. Clare’s Hospital. Joanne went on to complete nurses’ training and worked as a Registered Nurse while attending Memorial University part-time. She continued her career in community health until 1990 when she turned her focus to building a family business with her husband, working two jobs while studying to qualify as a graduate gemologist.

Joanne most recently served as the Executive Director of The Gathering Place, a community health centre serving vulnerable populations in downtown St. John’s. Under her leadership, The Gathering Place added an overnight shelter and saw a 400% increase in available services over a four-year period.

A lifelong learner, Joanne earned a Bachelor of Nursing, as well as an MBA specializing in Social Enterprise. In 2018 she was named a Newfoundland and Labrador Human Rights Champion and also received the Senate of Canada Sesquicentennial Medal for her generosity, dedication, and volunteerism in the community.

Joanne has always been an active volunteer, even going back to recertify as a Registered Nurse in 2009 to offer hands-on care to our city’s most vulnerable. She again put these skills to work on the frontlines of COVID-19 when The Gathering Place remained open throughout the lockdown.

Joanne has three grown children and lives in St. John’s East with her husband and two boisterous dogs Leo and Ebbie. Rain or shine, you can often find her hiking our province’s beautiful trails.

Julie Dzerowicz

Liberal – Davenport (Ontario)

Biography

Julie Dzerowicz is the first female Member of Parliament to represent Davenport. She currently sits on the House of Commons Finance Committee. She is also the Chair of the National Immigration and Refugee Caucus, the Vice-Chair of the Canadian Section of ParlAmericas, Co-Chair of the Canada-Mexico Parliamentary Friendship Group, Co-Chair of the Canada-Portugal Parliamentary Friendship Group, Executive Committee of the Canada-Ukraine Parliamentary Friendship Group, Chair of the Canada – Turkey Parliamentary Friendship Group, and Vice-Chair of the NATO Parliamentary Association.

Julie is the child of immigrant parents who fled their respective countries due to poverty, war and discrimination, and who came to Canada to find a safe place to raise their children.  Through her parents, Julie learned the importance of hard work and education as a means to achieving one’s full potential.

During the 43rd Parliament, Julie is proud to have introduced the first guaranteed income bill in the House of Commons in Canada—Bill C-273—An Act to Establish a National Strategy for a Guaranteed Basic Income. If passed, the bill would have enabled basic income implementation pilots on a large scale in provinces and/or territories across Canada. The success of these pilots would help the federal government understand how best to implement a national program across Canada.

Prior to becoming a Member of Parliament, Julie spent more than 20 years in increasingly senior level positions in banking and biotechnology. A long-time passionate environmentalist, she co-founded Project Neutral in 2010, an environmental organization dedicated to helping individuals and communities reduce their carbon emissions.  Julie received her MBA at the University of British Columbia (completing the degree at the London Business School) and her Bachelor of Commerce at McGill University.

Peter Fonseca

FINA Chair
Liberal – Mississauga East-Cooksville (Ontario)

Biography

Peter Fonseca, an Olympian who proudly represented Canada as a top Marathon runner, is the Member of Parliament for Mississauga East-Cooksville.

Peter is no stranger to public service, sitting in the Ontario Legislature as a Member of Provincial Parliament between 2003 and 2011. Peter served as a Cabinet Minister, taking on the Labour and Tourism & Recreation portfolios.

Peter has lived, worked and raised his family in his riding of Mississauga East-Cooksville for almost 20 years with his wife, Ward 3 Councillor Chris Fonseca, and their two children.

Peter is fluent in English and Portuguese.

Francesco Sorbara

Former Parliamentary Secretary to the Minister of National Revenue (2019-2021)
Liberal – Vaughan—Woodbridge (Ontario)

Biography

As the Member of Parliament for Vaughan-Woodbridge. He sits on the House of Commons Standing Committee of Finance. Francesco is Vice-Chair of the Canada-United States Inter-Parliamentary Group, and Executive Member of the Canada-Europe Parliamentary Association.

An economist by training and a CFA Charterholder, Francesco worked in the global financial markets in both Canada and the United States for JPMorgan Chase, DBRS, and the Bank of Nova Scotia. Originally from Prince Rupert, B.C., Francesco earned an honours degree in economics & finance from Simon Fraser University and a Masters of Arts (Economics) from the University of Toronto. Before entering public life, Francesco worked in the private sector for approximately twenty years.

A first-generation Canadian, his parents came to Canada from southern Italy 50 years ago. Settling in Prince Rupert, his father joined the Carpenters and Sheet Metal Workers’ Union and his mother worked in the local cannery and as a dietician’s aid, all while raising three boys. The values of hard work, family and a sense of community that his parents brought with them to Canada were instilled in Francesco and his brothers from an early age.

After putting himself through University with a variety of different jobs including working at a pulp mill and at a grain elevator, Francesco pursued opportunities at J.P. Morgan in the centre of the financial world in New York City. He lived and worked in the U.S. for six years before returning to Canada where he met and married his wife Rose, with whom he is proud to be raising two daughters, Eliana and Natalia.

As dedicated as he has been to his professional life, Francesco has been equally involved in community activities aimed at improving the lives of others. His volunteer work includes contributions to the United Way, Eva’s Initiatives and the Inner-City Scholarship Fund, as well as with organizations such as the Canadian Italian Business Association, the Italian Chamber of Commerce of Ontario and the Toronto Society of Financial Analysts.

Francesco’s professional background in finance and economics has provided him with an extensive expertise in financial materials across a broad range of industry sectors, including automotive media and telecommunications, retail, real estate, energy, infrastructure, and financial services. The knowledge that he has acquired through his work and academic training, coupled with his commitment to community and family, gives Francesco a unique perspective on Parliament Hill.

Francesco is constantly motivated by his Vaughan community, and continues to work with his colleagues in creating a strong Canadian economy that is resilient and leaves no Canadian behind. 

Adam Chambers

CPC CRA Critic
Conservative – Simcoe North (Ontario)

Biography

Adam Chambers is the Member of Parliament for Simcoe North.

After completing law and business school at Western University in London, Ontario and practicing law, Adam became a senior advisor to the Finance Minister in the Department of Finance. From this experience, Adam has developed an appreciation of the value of public service and the importance of fiscal responsibility.

Since 2015, he has been a board member of the Waypoint Centre for Mental Health Care in Penetanguishene to promote mental health and give back to our community.  Adam is also a founding board member of Building Up, a non-profit whose mission is to create employment opportunities in the skilled trades for at-risk youth. Prior to becoming a MP Adam was Assistant Vice President at one of Canada’s largest financial institutions.  

Pat Kelly

Former CPC CRA Critic
Conservative – Calgary Rocky Ridge (Alberta)

Biography

Pat Kelly was first elected as Member of Parliament for Calgary Rocky Ridge in October 2015, was re-elected in October 2019, and again in September 2021.

He previously served as Shadow Cabinet Minister for Small Business and Western Economic Development, Shadow Minister for National Revenue, Associate Shadow Minister for Finance, and Deputy Critic for Treasury Board. He has also served as Chair of the Standing Committee on Information, Privacy and Ethics (ETHI), Vice-Chair of the Standing Committee on Finance (FINA), as a member of the Standing Committee on Access to Information, Privacy and Ethics (ETHI), the Standing Committee on Government Operations (OGGO), and the Standing Committee on Public Accounts (PACP).

Pat graduated from the University of Calgary in 1994 with a BA in Political Science. He then worked as a mortgage broker and was the co-owner of a successful brokerage. He twice served as the President of the Alberta Mortgage Brokers’ Association, sat on the Real Estate Council of Alberta (a provincial regulatory body), and taught pre-licensing education at Mount Royal University.

Pat Kelly grew up in Silver Springs. He and his wife Kimberley have lived in Ranchlands since 1995, and they have three daughters.

Jasraj Singh Hallan

CPC Finance Critic
Conservative – Calgary Forest Lawn (Alberta)

Biography

Jasraj Singh Hallan was elected as the Member of Parliament for Calgary Forest Lawn in October 2019.

Jasraj grew up in NE Calgary, graduated from Lester Pearson High School and has an accounting diploma from SAIT. He has a certified Master Builder designation and ran a very successful homebuilding business with the joy of building many homes for families in Calgary. He and his wife still live in the NE and have 2 beautiful daughters.

Jasraj serves as the Shadow Minister of Finance and Middle Class Prosperity and Vice-Chair of the Finance Committee.

Marty Morantz

Former CPC CRA Critic
Conservative – Charleswood—St. James—Assiniboia—Headingley (Manitoba)

Biography

As a Member of Parliament Marty Morantz is dedicated to standing up for Charleswood-St.James-Assiniboia-Headingley residents. Before serving in the House of Commons, Marty Morantz served as Finance Chair for the City of Winnipeg where he delivered three straight balanced budgets and spent nearly four years on the Executive Policy Committee. He also served as Chair of Infrastructure, where he oversaw record investments in road renewal and infrastructure projects.

In Charleswood, Marty served as City Councillor from 2014-2018 where he fought and delivered many important projects like the new sports courts at LaFleche Park and the re-crowning of the Oak Park High School football field.

Dedicated to building an even better Canada, Marty and his family are generous philanthropists. Together, they have made major contributions to the Saul Morantz Building at the Simkin Centre, the Canadian Museum for Human Rights, and the University of Winnipeg. They have also established the Nathan Morantz Respite Care Fund in support of respite services in Manitoba and autism research.

In previous years, Marty served on the boards of Shalom Residences Assisted Living, the Refit Centre Foundation, Community Respite Services, Manitoba Families for Effective Autism Treatment (MFEAT), the Jewish National Fund, Young Adult Division, the Jewish Federation (CJA) Charitable Allocations Committee, and the Special Needs Steering Committee at the Gray Academy.

Marty has a B.A. in political studies from the University of Manitoba and a law degree from Osgoode Hall Law School. For 23 years, he practiced law as a partner at Levene Tadman LLP in Winnipeg. During his tenure, he acted as senior counsel to several large financial institutions and real estate management firms.

Gabriel Ste-Marie

BQ Finance Critic
Bloc Québécois – Joliette (Québec)

Biography

An economist by training, Gabriel Ste-Marie is the Bloc Québécois critic for finance and international trade. He made the fight against tax havens his first workhorse by tabling motion M-42 as soon as he arrived in Ottawa to close Barbados' tax loophole, by far the largest travel destination for large corporate money Canadian. The work of Mr. Ste-Marie in this file had also been noted by France Inter in 2017.

The member for Joliette also stood out by going to Washington to join forces with the Quebec steel and aluminum industries in the United States, in addition to being published in American media. He also defended Quebec's supply-managed producers through a unanimous motion adopted in the House of Commons demanding their full compensation for losses linked to free trade agreements with Europe, the Pacific region and North America.

Don Davies

NDP Finance Critic
New Democratic Party – Vancouver Kingsway (British Columbia)

Biography

Don Davies is the Member of Parliament for Vancouver Kingsway. He was first elected in 2008, and re-elected in 2011, 2015, 2019 and 2021.

Don serves Parliament as the NDP Critic for Finance and Deputy Critic for Foreign Affairs and International Development. Prior to that, he served as Health Critic, Critic for International Trade, Citizenship and Immigration and Multiculturalism, and Critic for Public Safety and National Security.

Don has been a very active parliamentarian and hard-working local representative.

Don introduced more legislation in the House of Commons than any MP in the country.  These include detailed plans for a national school nutrition program, free post-secondary tuition for students with special needs and a law to require floor-crossers to obtain the agreement of the voters who elected them.

Don’s office has helped over 20,000 Kingsway residents solve their federal issues, helping unite families, obtain EI, CPP and OAS benefits, and fix tax and Phoenix pay problems.

A strong believer in transparency and accountability, Don has held hundreds of public meetings to ensure that constituents’ voices are heard in Kingsway and on the national stage.

Don is active in a number of parliamentary caucuses and groups.  He is Co-Chair of the Global Health Caucus and the Parliamentary Friends of the UN, an Executive Member of the Canada-Europe Parliamentary Association and the Canada-China Parliamentary Association, and a Canadian Delegate to the Parliamentary Assembly of the Council of Europe.  He is a member of the Canada-Philippines Inter-Parliamentary Group, the Canada-Vietnam Parliamentary Group and the Canada-Armenia Parliamentary Friendship Group.

Before joining Parliament in 2008, Don worked as a lawyer, labour representative, and policy advisor. Throughout his career, Don has worked with private sector businesses to improve their human resources practices and served on many public bodies dealing with health and safety, employment standards, and transportation policy.

His education includes a Bachelor of Arts in Political Science and a Degree in Law.

Don is a long-time resident of the Kensington area of Vancouver Kingsway. He has been active in many community initiatives, including the Dickens Community Group, Mount Pleasant Parent Advisory Council, Fraser Street Neighbourhood Coalition, Tools for Peace, Co-op Radio and Lawyers for Social Responsibility. Don has taken particular interest in improving the lives of people with special needs.

He has been married for 35 years to Sheryl Palm, a Speech Pathologist at BC Children’s Hospital. They have three children and a granddaughter and have lived in Vancouver Kingsway for 25 years.