Grading the CRA's Customer Service :CRA SOTW
Alan Baggett
Grading the CRA on customer service
By KAREN BLOTNICKY Small Business
Sun. Jul 13 - 6:05 AM
THE CANADIAN Federation of Independent Business has been conducting
report card studies of the Canada Revenue Agency for a number of
years. This year, the federation interviewed more than 8,200
businesses and 472 tax practitioners to determine how they would rate
the agency’s customer and tax services.
The federation has been monitoring the situation since the former
Revenue Canada was transformed into the Canada Revenue Agency to
streamline the organization, make it more user-friendly and effective,
and boost service quality.
This year’s survey found that most business owners did not see an
increase in service level from the 2004 study, with 60 per cent
indicating that service had remained the same and 11 per cent
reporting an increase in service. Twenty-nine per cent felt that
service had weakened. But 77 per cent of business owners said the
agency’s service quality was acceptable to good overall.
In Nova Scotia, 23 per cent felt that the agency’s service was poor,
compared to 77 per cent who thought it was acceptable to good. The
poorest overall measure came in the area of accessibility of staff,
with 47 per cent of business owners rating the service as poor. Staff
knowledge was judged as acceptable to good by only 57 per cent of
respondents, while treatment by staff was rated higher, with 77 per
cent saying it was acceptable to good.
A notable weakness pointed out in the ratings by business owners was
for readability and simplicity of the information provided by the
Canada Revenue Agency. Only 55 per cent judged it as acceptable to
good. The organization was also considered slow to respond when
rulings or interpretations are required, with 51 per cent rating the
service as poor. There was also some concern with regard to the
consistency of rulings and interpretations, with 44 per cent feeling
that performance was poor in that service area.
The number of businesses that indicated they had been audited by the
agency rose three percentage points from the 2004 study to 24 per cent
this year. The study also showed that businesses spent an average of
10.5 days dealing with the audit, up from 8.9 days in the 2004 study.
Despite concerns about red tape and the time consumed by audits,
auditors received high praise from small-business owners, with most
indicating that their auditor’s behaviour had been acceptable to good.
Eight-six per cent said their auditor was courteous and respectful,
and 83 per cent believed their auditor was knowledgeable.
The cost of dealing with tax requirements, with or without an audit,
was cumbersome for business respondents. Sixty-five per cent cited
paperwork as a major factor, followed by complexity of the tax system
(50 per cent for federal and 45 per cent for provincial). Thirty-nine
per cent felt the administrative burden to comply with tax
requirements had increased since the last study.
Ratings by tax practitioners were far more critical throughout most of
the study measures. It is reasonable to anticipate that those tax
practitioners who service small-business clients will charge higher
prices for services as the burden of compliance increases.
While the overall results appear to be commendable, the business
federation has serious concerns about the administrative burden and
how it is growing and affecting businesses and tax service providers.
There are also concerns about consistency of rulings and the
complexity of the taxation system, which usually results in businesses
having to shell out more money to get expert opinions from tax
professionals before they can even file their returns.
Some tax filers reported being treated disrespectfully, or talked down
to, by agency staff. This is very frustrating for honest business
people who are simply trying to do the right thing and seeking
interpretation of complex tax requirements. There was a belief that
many agency staff try to intimidate, rather than facilitate, tax
filers.
The study has resulted in a series of recommendations from the
Canadian Federation of Independent Business. One is that the Canada
Revenue Agency should work to create a helpful internal culture,
rather than a culture of intimidation, to encourage compliance.
Another is the implementation of a taxpayer’s bill of rights that
would set out clear standards for compliance and feedback from the
agency. The bill could impose minimal response times on the agency,
while also mandating it to be consistent in its rulings and to honour
written rulings that have been made previously to tax filers.
A key recommendation includes using various means to reduce the
administrative burden placed upon firms for compliance. Part of this
rests with the entrepreneur as well, since the survey also showed that
most have not tried to use online services, which may actually
decrease response time.
It is time for business owners and the Canada Revenue Agency to work
together to find ways to make tax compliance easier, less frustrating
and less burdensome.
The survey report, with additional recommendations, may be viewed at
www.cfib.ca/research/reports/rr3060.pdf.
( kblot...@herald.ca)
Karen Blotnicky is president of TMC The Marketing Clinic and a
professor at Mount Saint Vincent University.
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