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Instead, they relied on other years’ information, which, of course, makes a significant difference in the overall assessment. The taxpayer rightly objected to the reassessment and is awaiting a correct result.

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These examples, and many more, are indicative of the significant waste of resources that occurs every time there is a reversal of the reassessment. It’s also a missed opportunity to build public trust. And for small businesses and average Canadians, it can be financially punishing to battle the CRA’s missteps without professional help.

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Is throwing more resources at the CRA a solution? No. The CRA’s headcount grew to 59,155 people in 2024 from 40,059 people in 2015, an increase of 47.6 per cent. Has this resulted in better audits or reduced objections? Nope.

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And what about more money for the CRA’s overall budget? Its budgeted authority was $13.2 billion for the 2022-23 fiscal year. For the 2025 year, it was $21.4 billion, an $8.2-billion increase, or 62.1 per cent, in three years. Has this helped reduce objections and improve audits? Again, a resounding no.

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Last week, Mark Carney’s government made it known to the various ministries that cost cutting is coming. Finance Minister François-Philippe Champagne sent communications to his cabinet colleagues that they need to find ways to cut spending by 7.5 per cent in 2026-27, 10 per cent the following year and 15 per cent in 2028-29.

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That’s a good start, but it needs to go a lot further, notwithstanding the objections of the public-sector unions and the usual doomsday predictions about such cuts.

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Will such cuts affect the CRA? Likely. However, is it the solution to the problems outlined above? Hardly. Such cuts will only scratch the surface of the bloat of the largest government agency.

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Instead, it’s my proposition that the following should be done:

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The CRA’s ballooning headcount, budget and enabling staff to work from home haven’t improved outcomes; they’ve entrenched mediocrity with taxpayers footing the bill for incompetence. We don’t need more auditors; we need overall improvement. And we need leadership willing to demand that change for the benefit of all Canadians.

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Kim Moody, FCPA, FCA, TEP, is the founder of Moodys Tax/Moodys Private Client, a former chair of the Canadian Tax Foundation, former chair of the Society of Estate Practitioners (Canada) and has held many other leadership positions in the Canadian tax community. He can be reached at kgcm@kimgcmoody.com and his LinkedIn profile is https://www.linkedin.com/in/kimgcmoody.

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