From: AlanBaggett@volcanomail.com   
      
   CRA reaps more than $1B through clawbacks - Critics accuse the agency of   
   targeting the vulnerable :CRA SOTW   
      
   Karina Roman • CBC News   
      
      
   The Canada Revenue Agency netted more than $1 billion over the past five years   
   through the agency's annual reviews of Canadians' federal benefits —   
   prompting critics to accuse the agency of making money off the most vulnerable.   
      
   Critics also say that some of the benefit money clawed back from taxpayers is   
   actually coming from people who qualify for those benefits but couldn't prove   
   it because of the agency's onerous standards, tight timelines and bureaucratic   
   bungling.   
      
   "The part that's troubling is what we hear from Canadians (who) ... do qualify   
   for the benefit but simply can't comply with the demands put on them to prove   
   their claim with the CRA," said Conservative national revenue critic Pat Kelly   
   in an interview    
   with CBC News.   
      
   "If people are just simply giving up on benefits to which they're entitled,   
   that's not the way that a government should raise revenue."   
      
   CRA numbers provided to CBC News show that since 2013-2014, CRA benefit   
   reviews have identified $3.021 billion to be repaid by taxpayers — while the   
   amount the agency found it owed taxpayers through those reviews totalled   
   $1.837 billion.   
      
   The result: the CRA netted $1.184 billion through benefit reviews over five   
   years.   
      
   "It's a big number and it would represent many thousands of families that   
   would be affected, so this reaches into every community across Canada," said   
   Kelly.   
      
   An 'easy target'   
   The smallest yearly gap between the amount payable to the CRA through benefit   
   reviews and the amount the agency owed was recorded in 2013-2014: $128   
   million. The widest gap was recorded in 2015-2016: $415 million.   
      
   Gerry Campbell is a tax specialist with Liberty Tax Services in Toronto. He   
   said that while there's no doubt CRA reviews catch people who should not be   
   receiving benefits, or are getting too much, he's also sure that some of the   
   money the agency claws    
   back is coming from Canadians who are eligible for their benefits.   
      
   "The eligible benefit deduction and the subsequent child tax benefits is   
   probably the government's most cost effective clawback they have," said   
   Campbell. "The CRA is a collection agency. For them, it's an easy target."   
      
   Each year, the CRA reviews the eligibility of hundreds of thousands of   
   Canadians for the Canada Child Benefit (and its predecessor, the Universal   
   Child Care Benefit) and the GST/HST credit. Eligibility for those benefits can   
   change due to shifts in    
   income, marital status and custody status, among other things.   
      
   Over the past five years, the agency has reviewed 332,131 accounts each year   
   on average. About 62 per cent of those accounts are found to be in need of   
   adjustment one way or the other.   
      
   "At its core, the objective of the benefits validation program is to ensure   
   that the right recipients receive the right amount of benefits — no more and   
   no less," said agency officials in an email to CBC News. "The program does not   
   have any revenue    
   targets."   
      
   The CRA's benefit reviews have come under increased scrutiny in the past year   
   as Canadians have come forward with complaints about the agency's onerous   
   requests for proof of eligibility. Some have claimed that, even when taxpayers   
   are able to comply with    
   the 30 day time limit, the CRA does not believe them.   
      
   Others have come forward accusing the agency of losing their submitted   
   documentation or giving them inconsistent information over the phone.   
      
   "In so many of these cases, these benefits are being denied unjustly. Revenue   
   Canada is actually pushing for repayment from folks who should be receiving   
   the benefit," said NDP finance critic Peter Julian.   
      
   "Through these reviews there's a crackdown on families. And families often   
   don't have the resources to push back."   
      
   Last spring, the agency commissioned its own focus group study of Canadians   
   who had seen their benefits cut off and subsequently restored. The study found   
   many people experienced problems with the benefits validation process —   
   failing to receive an    
   initial review letter requesting documentation, not being given enough time to   
   gather the necessary proof, finding that the documentation demanded by CRA was   
   too difficult to pull together.   
      
   Gathering the required proof can involve going to school officials or medical   
   professionals, navigating the legal system or reaching out to an estranged   
   spouse for help.   
      
   Many Canadians told the focus group they're still frustrated by their   
   inability to get anyone from CRA on the phone, which makes it difficult to ask   
   for time extensions.   
      
   A long wait for reversals   
   "The CRA asks to provide your information within 30 days and if you can't meet   
   that, you can get cut off," said Campbell, adding that if someone objects and   
   submits documents for further review, there's no reciprocal commitment from   
   CRA to deal with that    
   submission within a certain period of time. Benefit reductions and clawbacks   
   can be reversed, he said, but it can take months or longer to sort it all out.   
      
   "And they've been living on that child tax benefit. It can be part of the rent   
   they pay every month."   
      
   The CRA's own focus study recommended that the agency officially lengthen its   
   initial time allotment for Canadians to comply with a review. The CRA hasn't   
   followed through on that recommendation so far. The agency says instead that,   
   if recipients have    
   not responded to a request for information, instead of adjusting their   
   benefits immediately the agency will contact taxpayers first, and offer them   
   access to the agent working their case if they need more time.   
       
   National Revenue Minister Diane Lebouthillier declined to do an interview with   
   CBC News. She said in an emailed statement that, since coming to power, the   
   Liberal government has invested in a new client-focused approach at CRA that   
   has resulted in    
   service improvements.   
      
   "As a former social worker, I recognize that the credits and benefits offered   
   to the most vulnerable Canadians are essential for them to make ends meet,"   
   she said. "That is why, in the spirit of better service, it is important to me   
   that Canadians    
   receive the amounts to which they are entitled."   
      
      
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