CRA’s Hotline Gets 83% of Tax Answers Wrong — Canadians Left with No Recourse

Canadians who file incorrect tax returns after receiving bad information from the Canada Revenue Agency (CRA) have no legal protection, according to a prominent tax lawyer.

A recent report from Auditor General Karen Hogan revealed that between February and May 2025, CRA call centre agents answered only 17% of tax-related questions correctly.

The report, released Tuesday, noted that the agency appears more focused on maintaining its internal schedules for breaks and shifts than on ensuring the accuracy and completeness of the information given to taxpayers.

Tax lawyer David Rotfleisch said that under Canada’s Income Tax Act, taxpayers are fully responsible for filing accurate returns — and they “cannot and should not” rely on the CRA’s general inquiry line, which he called “notoriously wrong.”

Rotfleisch added that taxpayers who make mistakes based on bad CRA advice can appeal any resulting interest or fees, but they won’t face gross negligence penalties — which apply only when a taxpayer knowingly or recklessly files a false statement, adding a 50% surcharge to taxes owed.

Franco Terrazzano, federal director of the Canadian Taxpayers Federation, said the CRA’s performance is “horrendous,” urging the government to simplify Canada’s overly complex tax code.

“The Income Tax Act is so long and convoluted that practically no one can understand it,” he said.

In response to mounting criticism, Finance Minister François-Philippe Champagne launched a 100-day plan on September 2 to reduce call centre delays, setting a deadline of December 11.

But on Wednesday, the Office of the Taxpayers’ Ombudsperson expressed doubts about the CRA’s ability to maintain progress and meet service expectations as the 2026 tax season approaches.

“With some processing delays far exceeding the CRA’s service standards, it’s unlikely the backlog will be reduced to a sustainable level within 100 days,” the statement said. “A longer-term commitment and adequate resources will be necessary.”

The office added that it will continue to push for measurable improvements in the CRA’s taxpayer services.