Evidence of meeting #25 for Public Accounts in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was cra.

A video is available from Parliament.

On the agenda

Members speaking

Before the committee

François-Philippe Champagne  Minister of Finance and National Revenue
Serjak  Assistant Commissioner, Assessment, Benefit, and Service Branch, Canada Revenue Agency

4:25 p.m.

Conservative

Gérard Deltell Conservative Louis-Saint-Laurent—Akiawenhrahk, QC

For my part, I invite you to a constituency office to hear comments from citizens who tell us that they are poorly served by the Canada Revenue Agency. For 10 years, your government has allowed the situation to deteriorate. Now you are putting together a 100-day plan. Couldn’t you have done that 10 years ago, rather than a year ago?

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

Mr. Deltell, you are an honourable man. You know that I have only recently become Minister of National Revenue. When I saw the situation deteriorating—as everyone will agree—I took the necessary measures. First, I asked the chair of the agency’s management board to support us in this work. You must at least acknowledge that we rectified things. We changed the course of things. Standards have been raised in terms of the number of calls. We adopted technology and used artificial intelligence.

As I said, this is an ongoing process, Mr. Deltell. I’m not here to tell you that everything is rosy. I’m just saying that—and I’m sure you’ll agree—when there’s a problem, my job is to fix it. I’ve tackled it head-on and I’m trying to fix it.

4:25 p.m.

Conservative

Gérard Deltell Conservative Louis-Saint-Laurent—Akiawenhrahk, QC

Citizens want results, not excuses. They certainly don't want you to tell them that it's because you've just taken up your post. Your government has been in power for 10 years, and for 10 years you have allowed things to deteriorate. Citizens are the ones paying the price, and we are still wondering who in your department has paid for all this.

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

First, I would say to you, Mr. Deltell, that this is a new government, since the arrival of Prime Minister Carney.

Second, I am the Minister of National Revenue, but I am here, like you, to shed light on things and to make improvements. We can look back, but I am looking forward. You too are a results-oriented person. You will agree that I have spent hours with agency officials so that, together, we could improve services. We are not saying that the work is done, but we are saying that we are doing the work that is necessary to better serve citizens.

4:25 p.m.

Conservative

Gérard Deltell Conservative Louis-Saint-Laurent—Akiawenhrahk, QC

Please share that with the hundreds of people who are complaining in my constituency.

4:25 p.m.

Conservative

The Chair Conservative John Williamson

Thank you very much.

Next is Ms. Tesser Derksen.

You have the floor for six minutes.

Kristina Tesser Derksen Liberal Milton East—Halton Hills South, ON

Thank you so much, Mr. Chair, and thank you, Minister, for coming today. I appreciate that.

I just want to provide a bit of a foil to the comments of my respected colleague. My husband has run a small business for almost 20 years, and I'm also an entrepreneur. While no one is denying that there was room for improvement at CRA, I had some really good experiences dealing with the folks there. Even when agents couldn't get us immediate answers, they were always polite, they were respectful and they worked hard. I could tell they took pride in their positions and in the work they were doing for Canadians. That was across the board. I always felt like I was respected, even if sometimes the information I was getting might not have been fulsome or as accurate as it could have been.

I just want to provide that for all the folks out there who might be watching who may have worked for CRA or are working for CRA. We do value the work you're doing.

Minister, when Secretary of State Wayne Long was here in December, he updated us on the 100-day plan, which at that time was well into its mandate. You've had some time, I presume, to review the results, and you've given us some points. I'd like to know what you have found, either anecdotally or according to data, to be most impactful. What's the most impactful transformation that has come out of the 100-day plan?

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

Thank you for what you said.

I should have said from the get-go that I want to thank all the civil service people who work at the agency, particularly those in Shawinigan, as you would expect. That is where my heart is. I want to say thank you to them. I know many of them, and as you said, they're good people. They're trying to do their best with an outdated system.

To go back to what Mr. Deltell was asking, if I were to zero in, I would say it's the use of technology, because this is about improving services. I spent half a day side by side with an agent. Obviously, I could not answer the calls myself, but I could listen to the calls. When I realized it may take half an hour to identify a person, I started to understand why we have so many delays. It's because of some of the technology. I witnessed it. I was next to them. When you call a bank, there are other ways for you to be identified so that when you get to a human, they can deal with complex situations.

I'll give you an example. There were 300,000 phone calls from people who were calling the agency because they lost their password. They were locked out. Just think about that—300,000 people. We have dedicated professionals serving Canadians. You and I would agree—and I think members of the committee would too, since I see them nodding and smiling—that there's a better way to do that. When you lose your password to access your bank account, most people just go online, and the bank texts them a number or they email a new one, and then they have access again. That would allow professionals to be dedicated to serving Canadians better.

What I saw was accelerating technology. As you know, we are moving from the IBM contract service, which was the legacy system, to a Bell Canada service. We'll have a best-in-class call centre with AI-enabled functions to help our people do the best they can.

What I witnessed is that you can ask these people to handle calls in less time, but it really depends on the system, the complexity and the nature of the question. That's why I said that you have to approach it with humility. That's why I hope that members of the committee will go to one of these call centres to see this for themselves.

You also have to accept that the agency has been delivering a number of benefits. Some are new, like the disability tax credit, for example. It's normal for people to have questions with respect to that and on a number of things that we did during the pandemic.

We've really focused on how we can answer more calls and how we can have self-service options. If you go to the website, you'll see there are more ways for people to deal online with the situations that concern them. We're looking at the root causes and how we can simplify the process.

I must say that Madame Serjak has been great at finding ways to simplify the process. I'll say that to Mr. Stevenson. We consulted a number of people and said, “What is your experience? How can we work with CPAs and accounting firms in the country? What are the pain points? What can we do?” I would say it's kind of a modernization.

We have invested in the agency, and I'm very conscious, as Monsieur Deltell was saying, that the same people who write to him would stop me on the street to talk to me about that. I'm very conscious of their concerns.

I can tell you that every time someone has stopped me, I've made sure that I call the commissioner. He's on speed-dial. Every time someone stops me in the street to tell me about something that doesn't work with the agency, I call the commissioner, because it's good for him to know. People tend to recognize me and they may know him less, but trust me: You can rest assured that every time someone.... You can see Madame Serjak smiling, because they receive a number of phone calls from me. Every time someone stops me to talk, I refer it back to the agency and say, “What can we do? How can we address the situation?”

I would say to this committee that a lot of the root cause is around technology. I want to thank all the people at the agency, because they have embraced the challenge like never before, but if you want to free up agents and reduce the time to answer calls, you have to leave the kinds of services that used to be provided by an agent to technology. There's My Account, for example, where people can manage their payments. A lot of those types of things are being done online, and the numbers speak for themselves.

As I said, it's a work in progress. I'm not here to say to Canadians that everything has been done, but I can tell you that the person who was next to me and all the 50,000-plus agents we have at the agency are really doing their best to serve Canadians.

Kristina Tesser Derksen Liberal Milton East—Halton Hills South, ON

That's great. Thank you so much.

It's good to hear that you had a good experience sitting in on the calls. I personally would have loved it if I called CRA and you'd answered the call and I had you on the other line. I think that would have been great.

Just to flip the coin a bit, is there anything that came out of the 100-day plan that had much less impact than you were anticipating? Were there things you thought you would see great success on that didn't really bear out?

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

People say I have a bit of energy, and some would say I'm impatient. I wish we could go faster.

Obviously, we're dealing with a certain level of complexity. The assistant deputy minister could tell you that there are security issues. We have a legacy system. We need to make sure we prevent fraud. We need to make sure we provide services to people who, for example, may not have access to technology because they may not be familiar with these tools. There are a lot of things.

Despite my trying to push them to go faster, adoption of technology takes time, and there's training. For example, this whole AI system is going to help us, and we're getting there, but if you ask me, I'd say my frustration was probably the speed at which we can do that.

One thing they did very quickly was to deploy agents to reduce the waiting time. That they could do, and I'm grateful for that, but when you talk about technology implementation and adoption and all the security systems we need and the cybersecurity we need, there are very few off-the-shelf things you can just plug in and say, “Here you are. You have a silver bullet.” You need to test these systems. They need to be robust. They need to be fit for purpose in a world where cybersecurity is top of mind. We are dealing with personal data, so we have to be best in class.

4:35 p.m.

Conservative

The Chair Conservative John Williamson

Thank you very much. That is your time, I'm afraid.

Mr. Lemire now has the floor for six minutes.

Sébastien Lemire Bloc Abitibi—Témiscamingue, QC

Thank you, Mr. Chair.

Minister, thank you for joining us.

As you mentioned, Minister, you represent a region that can be described as remote, like mine. In the current context of budget cuts, there is little new hiring in regional centres, which is fuelling concern about the future and sustainability of the public service in more rural areas.

To what extent does the government intend to implement measures to protect existing jobs and ensure the maintenance, or even growth, of the workforce in remote regions such as yours and mine? How can we promote local employment and community vitality, rather than continuing to serve large urban centres?

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

Thank you, Mr. Lemire. That gives me an opportunity to say something about this.

You know, I recently had the opportunity to participate in the official opening of the Shawinigan tax centre. This is one example of how investing in the future helps to secure jobs. We had one of the largest centres where the agency conducts audits, and I believe it was the most bilingual in Canada. I made sure that we were going to invest in it. You're right about that. In my mind, I've always tried to prioritize jobs in the regions, and I'll tell you why: it's because the retention rate is higher. We've noticed that. At the Shawinigan tax centre, for instance, our retention rate is around 95%. In large urban centres, of course, there is more labour mobility. Training an audit officer takes us 6 to 12 months. So, you can see that there is a regional economic development benefit, but there is also an economic benefit in keeping our people. Furthermore, you know as well as I do that in the regions, people make a career out of it. People who join the agency in Shawinigan, in my region, spend 20 or 30 years of their lives there.

I completely agree with you: investment and prioritization are needed, because it makes sense.

Sébastien Lemire Bloc Abitibi—Témiscamingue, QC

We are counting on you.

We have seen both CRA officials and your Secretary of State, Mr. Long, come forward to question the accuracy of the data and responses provided by the Auditor General in her audit. During their visit here, I felt that the CRA commissioner, Bob Hamilton, was downplaying the facts raised by the Auditor General in her report. He said that 13,000 calls had been listened to and that he did not really understand how the Auditor General had arrived at that figure. However, a May 2025 La Presse article reported that CRA employees, speaking on condition of anonymity, had pointed this out.

How do you interpret Mr. Hamilton's comments? Do you agree with the Auditor General's findings, which do not really correspond to Mr. Hamilton's description of the situation? Do you agree with what the Auditor General stated, or do you believe that the results were incorrect?

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

The Auditor General's report speaks for itself. She made certain findings, and we must respect that. That's her role.

As I was saying, since the start of the year, we've continued to carry out quality control checks at the agency. We've done 100,000 of them, and we've achieved a verification rate, meaning an accurate answer rate, of 90%.

That's why I say that it depends a bit on the methodology. I'm not disputing the work done by the Auditor General. I'm just saying that, with 32 million calls, the volume is certainly quite significant. It's a matter of sampling. For example, it depends on whether we're talking about general questions. On that note, I would like to get back to what Mr. Deltell said when he asked me his questions. If we look at the methodology—

Sébastien Lemire Bloc Abitibi—Témiscamingue, QC

That's for the Conservatives.

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

Yes, but I want to make it clear that we have what we call general requests and specific requests. In terms of methodology, are these specific calls? If so, they're individual cases. Are they general calls? It isn't the same methodology. We would need to see the results.

Sébastien Lemire Bloc Abitibi—Témiscamingue, QC

You can respond to the Conservatives when it's their turn to speak, Minister.

The CRA's call centres are run in the same way as a private company's call centres. The faster you respond to calls and the more calls you take, the better. Yet the main criterion should be to provide taxpayers with an accurate answer. The CRA is a public service that provides answers to taxpayers. When you focus more on the average time taken to answer a call than on the ability to provide an accurate answer—one of the staffing criteria—you aren't assessing the same thing.

Why is the average call time in government call centres so important? Don't you think that, in a call centre, providing an accurate answer should be the main criterion?

During their visit on December 4, Wayne Long, your secretary of state, and Jean‑François Fortin, the deputy commissioner, both acknowledged that the accuracy of answers should be given greater weight in employee evaluations.

Can you tell us, after your 100‑day plan, whether this criterion still gives employees more points in their evaluation?

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

Depending on how you phrased your question, certainly the accuracy of the answers is key. I think that this is what we expect from CRA agents.

What steps have we taken to do this? I spoke with Ms. Serjak about this earlier today. We've redesigned certain programs, for example, for the ongoing training of our agents. Certain programs and obviously the Income Tax Act are quite complex. We have made some findings. Again, I would like to thank the Auditor General. As a result of her recommendations, we've improved our ongoing training, to ensure that—

Sébastien Lemire Bloc Abitibi—Témiscamingue, QC

We're just a few days away from tax season. Has this criterion in employee evaluations been changed? I'm talking about the percentages that reflect where the values lie. Has this been changed in any of the steps taken as part of your 100‑day plan?

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

I can tell you that it's important. If you would like a more specific answer, I'm sure that Ms. Serjak could tell you more. If not, we can provide the committee with an answer later.

Sébastien Lemire Bloc Abitibi—Témiscamingue, QC

Would you like to add anything, Ms. Serjak?

Melanie Serjak Assistant Commissioner, Assessment, Benefit, and Service Branch, Canada Revenue Agency

Yes, certainly. Thank you.

In order to be accurate about the accuracy issue, I should say that 45% of our agents' performance ratings concern productivity, and 45% concern quality. The quality of answers encompasses a number of aspects, including—

Sébastien Lemire Bloc Abitibi—Témiscamingue, QC

You're generous.

4:40 p.m.

Assistant Commissioner, Assessment, Benefit, and Service Branch, Canada Revenue Agency

Melanie Serjak

—accuracy, their ability to properly authenticate the individual, since this remains a critical aspect of our services, as well as their ability to provide individuals with the correct procedures and policies to follow.

Since then, we've taken on board the Auditor General's recommendations. We're in the process of improving our agents' performance program. It's a work in progress.