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Canada Revenue Agency Faces Service Criticism Amid Job Cuts and Budget Review

⏱ 4 minute read
Canada Revenue Agency

The Canada Revenue Agency (CRA) is under growing pressure to improve its services as Canadians continue to report long delays and poor call centre experiences. Federal officials, unions, and taxpayers are raising concerns, while the government weighs future budget cuts.

Wayne Long, the secretary of state responsible for the CRA and financial institutions, described the agency’s call centre service as “completely unacceptable.” He said it had reached “rock bottom.” Despite this criticism, Long avoided confirming whether the agency would face further spending cuts in the coming years.

All federal ministers have been asked by Prime Minister Justin Trudeau to find up to 15 percent savings in their departments’ daily spending over the next three years. The review comes ahead of the Liberal government’s first budget, expected in October.

Long emphasized that the review is ongoing and that he will not “prejudge the process.” He assured Canadians that services “will not get worse” and admitted taxpayers are already waiting far too long for assistance.

The Union of Taxation Employees, which represents CRA workers, argues that the service decline is linked to job cuts. The union says nearly 3,300 call centre jobs have been eliminated since May 2024.

Government data supports this claim. According to the Treasury Board, CRA staff levels dropped from 59,155 in 2024 to 52,499 in 2025. The result has been fewer agents available to answer calls. On average, fewer than five percent of callers manage to reach an agent.

Union leaders insist that restoring staff levels is the only way to improve service quality. They say the agency cannot meet Canadians’ needs without adequate staffing.

In early September, National Revenue Minister François-Philippe Champagne ordered the CRA to take immediate action. He directed the agency to launch a 100-day plan aimed at improving services and reducing long wait times.

The initiative includes new internal measures. A CRA spokesperson said the agency is reallocating resources and introducing “call scheduling tools” to better manage demand. Targeted teams are also being deployed to speed up processes in key areas. These include T1 adjustments, Disability Tax Credit applications, and Canada Child Benefit claims.

Despite job cuts, Long confirmed that the CRA will extend contracts for 850 call centre employees. Their contracts were originally set to end, but the decision has been reversed until after next year’s tax-filing deadline.

Long told CTV that if the CRA were a private call centre selling hotel rooms, it “would be out of business, and heads would roll.” His comments highlight the urgency of fixing the agency’s service issues.

At the same time, the CRA is making cuts elsewhere. It will not renew contracts for 250 term employees at tax centres. These changes are part of a workforce adjustment as temporary programs created during the COVID-19 pandemic come to an end.

The CRA faces a difficult balancing act. On one side, it is under government orders to cut costs and reduce spending. On the other, Canadians demand better and faster services.

While some positions are being saved, others are being phased out. This mix of reversals and reductions shows the complexity of managing taxpayer services during a period of budget restraint.

For many Canadians, the issue is not about budgets or internal restructuring, it is about access to help. Long wait times, unanswered calls, and delays in processing applications have left taxpayers frustrated.

The government has promised improvements, but the effectiveness of the 100-day plan remains to be seen. Canadians will be watching closely to see whether the CRA can restore trust and deliver the timely service taxpayers expect.

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