Officially induced error

The CBC is reporting that “[o]ne of every four business callers who ask for tax help from the Canada Revenue Agency’s call centres gets bad information, an internal survey suggests.”

I don’t find this finding surprising, but the moral of the story isn’t that the CRA is staffed by idiots (it’s not). The problem is that the CRA is being asked to administer an overly complex statute, now with fewer resources.

Anyway, I’ve said it before, but I’ll say it again. If you ask the CRA for information, be aware that relying on incorrect advice will not excuse you from paying taxes that are reassessed later because of your reliance. You might be able to convince the Agency to cancel interest and delete penalties. Be prepared to prove, however, that you relied on advice you received from the Agency. When you call a helpline, get a name and an identification number, and make note of the date and time of your call. You should also make detailed notes of the questions you asked, the facts you provided and the responses given. Then, put the notes in a safe place where they can be retrieved if a reassessment is issued.

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