Ombudsperson Final Update – Back to Basics: Taxpayers Have Rights

As Canadians, we are entitled to many rights (such as democratic, language and equality) and freedoms (such as religion, expression and assembly). Some rights are protected by law, such as the Canadian Charter of Rights and Freedoms, while others are laid out in principle. The Taxpayer Bill of Rights (TBR) is one such set of principles that details the rights a taxpayer is entitled to when dealing with the Canada Revenue Agency (CRA). The TBR contains 16 rights; these rights are a mix of statutory rights, common law rights, and administrative rights.

When speaking with organizations and individuals across Canada, we found that many are not aware of the TBR. When meeting with CRA employees, we also found that many of them are not aware of the TBR and, of those who are aware, many do not have a deep understanding of its importance.

However, the TBR is not new. Its creation and the creation of the role of the Taxpayers’ Ombudsperson were both announced on May 28, 2007. Both initiatives sought to “enhance the services delivered to Canadians by the […] CRA,” increase the CRA’s accountability, and “ensure fair treatment of all taxpayers by the CRA.”

In our preliminary research, we found that the information on the TBR is not easily accessible and is not prominently featured in the CRA’s corporate reports, communication products, and its web pages. Our preliminary research also revealed insufficient training available on the TBR.

A former Taxpayers’ Ombudsperson, Sherra Profit, determined it was necessary to launch a systemic examination into whether the CRA was using the TBR as a foundational document to guide its daily activities; and how the CRA ensures it is continually accountable in upholding taxpayer rights and reporting publicly on how it does this.

Our Office examined:

• The degree to which the rights in the TBR guide the CRA’s daily activities and its interactions with taxpayers.
• The approach the CRA takes to ensure it is accountable in upholding the TBR.
• The ways in which the CRA publicly reports on how it upholds the rights in the TBR.

To address the issues raised in this report, the Taxpayers’ Ombudsperson made 14 recommendations to the Minister of National Revenue and the Chair of the Board of Management of the CRA.

For the CRA to ensure it upholds taxpayer rights in the TBR, it must acknowledge that taxpayer rights are embedded in all areas of the CRA. The TBR must be one of the CRA’s foundational documents, and it must be seen as such by its employees and by the public. The values the TBR embodies must be reflected in the CRA’s products. These products can include:

• policies and procedures
• training
• performance expectations
• corporate plans
• corporate reporting

Although there are many areas where the CRA incorporates the TBR, it falls short of clearly demonstrating the importance of taxpayer rights to its employees and to the public.

The CRA also does not clearly demonstrate how it is using the TBR as a foundational framework to make decisions, set policies, and guide its interactions with taxpayers.

The CRA needs to make connections between its values, the duties of its employees, and taxpayer rights in the TBR.

To ensure its employees deliver quality service when interacting with taxpayers the CRA must achieve widespread understanding of, and respect for, the rights outlined in the TBR. While CRA employees may have the best intentions to act in accordance with the CRA’s values, these values should stem from taxpayer rights. Unfortunately, it is not clear how the CRA is equipping its employees to uphold the values set out in the TBR.

CRA employees need to understand the importance of taxpayer rights and how to incorporate and respect these rights in all of the CRA’s workflows and activities. An agency-wide approach is necessary to ensure a uniform understanding of taxpayer rights among all CRA employees. After an overarching approach is implemented, education regarding taxpayer rights should be incorporated in specific program-related products.

While the CRA does report on some taxpayer rights, it falls short of addressing the totality of the rights in the TBR. It also misses the opportunity to draw parallels between its actions and taxpayer rights.

The CRA needs to be held accountable to taxpayers by showing them how it upholds their rights. The CRA also needs to emphasize the importance of these rights when interacting with taxpayers.

We made 14 recommendations in this report. The CRA:

• agreed with two of them — recommendations 10 and 11
• agreed in part with seven of them — recommendations 1, 2, 3, 6, 7, 8 and 12
• agreed in principle with five of them — recommendations 4, 5, 9, 13 and 14

The CRA also created an action plan that did not sufficiently address the recommendations made by the Taxpayers’ Ombudsperson.

The Taxpayers’ Ombudsperson recommended that the CRA conduct a holistic, Agency‑wide review of the way it views and uses the TBR, to ensure it is foundational in the CRA’s policy framework, culture, activities, and operations.

The CRA agreed with this recommendation in part. It stated that

However, the CRA agreed that:

In the 2022 update of its action plan, the CRA reiterated what it had indicated in its 2021 update; its People First philosophy “puts people at the centre of everything the CRA does” and at a high level, this philosophy aligns with the TBR. As a result, the CRA stated that it “continues to apply the TBR lens to its service evolution initiatives.”

The CRA has considered that this action plan item has been completed.

We acknowledge the work the CRA is doing to improve services by putting people first. However, what we recommended was “a holistic, Agency-wide review of the way [the CRA] views and uses the Taxpayer Bill of Rights.” Although the CRA indicates that its People First philosophy puts people at the centre of everything it does, this does not necessarily mean that the TBR is always foundational to the CRA’s policy framework, culture, activities, and operations. The CRA states that its People First philosophy aligns with the TBR “at a high level,” which implies that this may not always be the case when considering specific actions.

As we can observe, more work needs to be done; however, we have concluded that the CRA’s action plan has addressed the spirit of our recommendation.

The Taxpayers’ Ombudsperson recommended that the CRA build its service transformation and service culture upon a foundation of the rights in the TBR.

The CRA agreed with this recommendation in part, stating in its action plan that,

In the 2022 update of its action plan, the CRA reiterated that,

Even though the CRA action plan has not fully addressed what we recommended, we are satisfied with the steps the CRA is taking to continue to strengthen the TBR’s presence in the transformation and culture items. We have concluded the action plan has addressed the spirit of our recommendation.

The Taxpayers’ Ombudsperson recommended that the CRA create, and require the application of, a methodology to be used to assess how proposed, amended, new, and existing frameworks, policies, procedures, workflows, programs, initiatives, training, etc. impact and uphold the rights in the TBR, to ensure taxpayer rights are always promoted and upheld.

The CRA agreed with this recommendation in part, referred us to the response it provided for recommendation 1 and considered its action plan has been completed for this item.

In its response, the CRA indicated that:

Even though the CRA did not elaborate on what part of the recommendation it did not agree with, we have concluded that the CRA’s action plan has addressed the spirit of recommendation 3. 

The Taxpayers’ Ombudsperson recommended that the CRA update its Code of integrity and professional conduct to include an explanation of the rights in the TBR, employees’ obligation to uphold taxpayer rights in their daily work at the CRA, and how they should uphold those rights.

The CRA agreed with this recommendation in principle. It responded that: 

In the 2021 update of the action plan, the CRA informed us that there is a new reference to the TBR in the code’s introduction that came into effect on April 1, 2021, which reads:

It was good news to see the TBR referred to in the preamble of the CRA’s Code of Integrity and Professional Conduct and referenced in the Client Service Excellence section. While there is no explanation of taxpayers’ rights in the Code, there is a link to the TBR web page. We hope this will lead to more awareness and understanding of the TBR among CRA employees.

We have concluded that the CRA’s action plan has addressed the spirit of recommendation 4. 

The Taxpayers’ Ombudsperson recommended that the CRA create a general TBR training course applicable to and mandatory for all CRA employees, as well as additional program-specific TBR courses for specific workloads. All employees should take these courses and retake them after any significant update to a course or a change in employee position.

The CRA agreed with this recommendation in principle: 

The CRA also agreed, “to evaluate the practicality of creating a separate mandatory course dedicated solely to the TBR.” It said it would “continue to seek opportunities to include information on the TBR in its learning products.”

In the 2022 update on its action plan, the CRA pointed out that it had “a suite of required learning products that respond to the recommendation and demonstrate the CRA meets this need.” For instance, the CRA mentioned references to the TBR found in the mandatory course Code of Integrity and Professional Conduct and in the required learning paths supporting the administration of tax and benefits programs.

The CRA concluded:

While the CRA has considered this action plan item completed, references to the TBR in existing learning materials are not sufficient to provide meaningful learning opportunities related to the TBR. We have concluded that the CRA’s action plan has not addressed our recommendation. 

The Taxpayers’ Ombudsperson recommended that the CRA create a public training course on the TBR and include it as part of the training offered to volunteers of the Community Volunteer Income Tax Program.

The CRA agreed with this recommendation in part. It said it was “unable to implement this recommendation to the extent suggested due to the scope of the TBR.” The reason, according to the CRA, is because

The CRA indicated, however, that “while the CVITP volunteers are not responsible for upholding the TBR, it does agree that it would be beneficial for them to be aware of it.” Therefore, the CRA agreed “to conduct a review of the training package for CVITP volunteers to see where it would be feasible to include mention of the TBR.”

In the 2022 update on its action plan, the CRA indicated that it has introduced the new “Learn about your taxes” online learning tool:

This action plan shows that the CRA is not creating a public training course on the TBR to be included in the training offered to volunteers of the CVITP.

We agree with the CRA that while the CVITP volunteers are not responsible for upholding the TBR, it would be beneficial for them to be aware of it. However, they should not be only aware of it; they should also have a good understanding of the taxpayer rights outlined in the TBR. Creating a public training course on the TBR and including it as part of the training offered to volunteers of the CVITP would have helped in that regard.

We have concluded that the CRA action plan has addressed the spirit of our recommendation. 

The Taxpayers’ Ombudsperson recommended that the CRA ensure its internal products and web pages provide workflow-specific linkages between content and taxpayer rights, and include hyperlinks to one internal web page containing the TBR in its entirety, an overview of each taxpayer right, examples of how CRA employees are to uphold taxpayer rights in their daily activities, the recourse options, and any applicable guides and resources.

The CRA agreed with this recommendation in part. It indicated that:

The CRA has since published an internal webpage with information about the Taxpayer Bill of Rights.

The CRA also mentioned that it “already makes linkages to the TBR in several of its corporate plans and reports, and will continue to do so.” In addition, the CRA said it commits to ensuring that:

The CRA also indicated that it “will conduct a review of its existing internal products and webpages, where relevant, to identify opportunities to incorporate linkages to and promotion of the TBR.”

In the 2021 update on its action plan, the CRA outlined some actions it has taken in 2020 and 2021 to highlight and promote the TBR:

• October 2020
  • An all-staff email from the Commissioner and Deputy Commissioner sent to highlight the TBR, with the announcement of the new Ombudsperson. This email was published on the CRA’s internal employee network and was included in the weekly News Summary email to all employees.
• November 2020
  
  • A log on banner published for one week encouraging employees to learn more about the TBR.
• March 2021
  • A log on banner published for one week encouraging employees to learn more about the TBR.
  • A spotlight news item published on the home page of the CRA’s internal employee network and included in the weekly News Summary email to all employees.
  • An internal message from the Assistant Commissioner of the Service, Innovation and Integration Branch stressing how the CRA continues to uphold the TBR and showing its commitment to service when interacting with taxpayers the during the pandemic.

Overall, the hyperlinks added to internal products and web pages that redirect to the external TBR webpage do meet the goal of our recommendation. Nevertheless, we have concluded that the CRA action plan has addressed the spirit of our recommendation.

The Taxpayers’ Ombudsperson recommended that the CRA create mandatory Executive level performance expectations, with specific examples, to ensure their employees at all levels uphold the TBR.

The CRA agreed with this recommendation in part. According to the CRA: 

The CRA said it has

In the 2021 update on its action plan, the CRA confirmed that, “[the] EX Foundation Table and Associated Performance Measures” for 2021–2022 references the TBR.

While the CRA only agreed in part with this recommendation, and did not create a mandatory Executive level performance expectations related to the TBR, we consider its action plan to have addressed the spirit of our recommendation. 

The Taxpayers’ Ombudsperson recommended that the CRA integrate the TBR in all CRA facilities in a prominent manner throughout employee work spaces and in any public facing area.

The CRA agreed with this recommendation in principle. It stated that, “promoting the TBR and making it a more prominent fixture in its facilities would be an effective means of raising the awareness of its employees.”

However, the CRA indicated the following:

Also, according to the CRA, “there is an extensive process to request permission from landlords to post information in public facing areas, without a guarantee that permission will be granted.”

The CRA added that, “[it] believes that a digital solution would be the most effective and efficient method of promoting the TBR” and agreed “to conduct an analysis of the digital options available for this purpose.” The CRA indicated that in the interim, it would “send an email to all of its employees which will include a copy of the TBR poster and a link to the TBR webpage,” complementing its existing initiatives to promote the TBR.

In the 2021 update on its action plan, the CRA outlined:

In its 2022 update, the CRA confirmed:

The CRA did not integrate the TBR in its facilities in a prominent manner throughout employee work spaces or in any public facing area, as we recommended. However, the digital solution implemented by the CRA appears to be an effective way of raising awareness of the TBR among its employees. We do, however, encourage the CRA to do more to digitally promote the TBR in a more prominent manner. For instance, the log on banner could be published more than twice a year.

We have concluded that the CRA action plan has addressed the spirit of our recommendation. 

The Taxpayers’ Ombudsperson recommended that the CRA regularly update Guide RC17 “Taxpayer Bill of Rights Guide: Understanding your rights as a taxpayer,” to include a focus on how the CRA upholds each taxpayer right.

The CRA agreed with this recommendation. It indicated: 

In the 2021 update on its action plan, the CRA confirmed that the Guide RC17 is circulated and updated annually:

In addition, the CRA has since made the guide into an easily modifiable web page  which facilitates quick updates. We are satisfied with how the CRA’s action plan has addressed this recommendation.

The Taxpayers’ Ombudsperson recommended that the CRA create one external web page containing the TBR in its entirety, an overview of each taxpayer right, examples of the application of each taxpayer right, the recourse options, and any applicable guides and resources (the new Taxpayer Bill of Rights web page).

The CRA agreed with this recommendation. It responded that:

The CRA acknowledged that there was merit to adopting the suggestions made in our recommendation. The CRA therefore indicated that, “[it will] extend the work to ensure that the completed webpage includes more comprehensive information that will allow for a more practical understanding of each right and commitment.”

In the 2021 update on its action plan, the CRA provided us with the updated external web page containing the TBR which replaced the Guide RC17. Therefore, we have concluded that the CRA’s action plan has addressed our recommendation.  

The Taxpayers’ Ombudsperson recommended that the CRA update its external web pages and public facing products to include the values outlined in the TBR, specific references to the TBR, and references or hyperlinks to the new TBR webpage; and where the information pertains to specific elements of taxpayer rights, to specifically mention those rights.

The CRA agreed with this recommendation in part. The CRA referred to the commitment it has made to “[m]aking information more helpful and easier to understand” as part of its People First campaign. This campaign includes the following statement: 

The CRA said it was already working to include its People First messaging in all of its external communications products, where appropriate. The CRA added that it will conduct a review of its external web pages and public facing products to determine if there are relevant opportunities to promote the TBR.

In the 2021 update on its action plan, the CRA highlighted that it continues to add references to the TBR where relevant and provided examples. In its 2022 update, the CRA informed us that it added links to the TBR to 38 of the key pages on the Taxes theme of Canada.ca in both languages, for a total of 76 pages.

While more work needs to be done to effectively promote the TBR through the CRA’s external web pages and public facing products, we agree with the CRA that this action plan item has been completed, as it has addressed the spirit of our recommendation.

It is also worth noting that recommendation 1 in our 2024–2025 Annual Report recommended that the CRA review the content of its web pages. As such, there is an opportunity for the CRA to include more links and information about the TBR, what taxpayers can expect from the CRA and possible recourse options on its website.

The Taxpayers’ Ombudsperson recommended that the CRA include on its main external webpages a reference to the TBR and a hyperlink to the new TBR webpage.

The CRA agreed with this recommendation in principle. It responded that

In the 2021 update on its action plan, the CRA told us that recommendation 13 is completed and provided the link to the new TBR web page from its landing page, canada.ca/cra.

We are satisfied that the link to the TBR web page is provided on the CRA’s overview web page and have concluded that the CRA’s action plan has addressed our recommendation. 

The Taxpayers’ Ombudsperson recommended that the CRA create an annual report located on the new TBR web page, listing the rights in the TBR, reporting on how the CRA has upheld each of the taxpayer rights, and describing any improvements the CRA has done or plans to do, to uphold each of the taxpayer rights.

The CRA agreed with this recommendation in principle. It agreed that,

The CRA also indicated:

In the 2021 update on its action plan, the CRA stated:

The CRA said it,

In addition, as per the CRA’s update for recommendation 1, going forward, additional considerations will be explored to strengthen linkages from the TBR to the Agency’s transformation landscape and corporate documents, where applicable.

In the 2022 update, the CRA reiterated:

While we find the actions the CRA is taking interesting, this is not what we recommended. Our recommendation was for the CRA to create a stand-alone annual report that details how the CRA has upheld each taxpayer right and what improvements the CRA has done, or plan to do, to uphold these rights. Similarly, the yearly follow-ups the CRA has made to its action plan, to uphold its commitments to our recommendations, do not address recommendation 14.

Therefore, we have concluded that the CRA’s action plan has not addressed recommendation 14. 

The CRA has considered that all action plan items regarding the 14 recommendations have been completed. However, based on the above analysis, we have not reached the same conclusion.

Our analysis shows that the CRA’s action plan has mostly addressed the spirit of the recommendations. This means that although the CRA has made efforts to promote and implement the TBR, overall, its action plan does not comprehensively address our recommendations. This is not a surprise, given that it only fully agreed with two of our recommendations. Therefore, more work is needed to establish how the TBR is incorporated and respected in all CRA workflows and activities.

The TBR is an essential document for our Office and for the CRA when it comes to service matters. We will continue to monitor potential service issues regarding the TBR through information the CRA provides online, the complaints we receive, media reports, and (when possible) outreach activities.