Looming CRA Strike a ‘Threat’ to Small Businesses, Tax Deadlines Should Be Delayed: Business Group

The Canada Revenue Agency (CRA) headquarters Connaught Building is pictured in Ottawa on Aug. 17, 2020. (Sean Kilpatrick/The Canadian Press)

The potential strike by Canada Revenue Agency (CRA) workers “poses a threat to small businesses,” as they rely heavily on CRA for guidance needed to file their taxes on time, says the Canadian Federation of Independent Business (CFIB).

CFIB called on CRA to delay tax deadlines so businesses don’t receive penalties and interest for filing late.

Small businesses have already had a hard time getting guidance from CRA, according to an April 17 statement by CFIB. A recent CFIB survey of its members found 53 percent had to call CRA multiple times before getting through, and less than a quarter felt confident in the answers they got.

“The potential strike would further exacerbate the situation, causing additional strain on small businesses,” CFIB said.

It also called on CRA to maintain full service to small businesses if a strike is triggered, consider back-to-work legislation, and clearly communicate to small business owners what their responsibilities are in the event of a strike.

With the tax deadline looming, more than 35,000 CRA employees—as well as about 120,000 other federal public servants—represented by the Public Service Alliance of Canada–Union of Taxation Employees (PSAC-UTE), are in a legal strike position.

The workers are seeking a wage increase of 33 percent over the course of three years, which CFIB estimates could cost taxpayers $1 billion.

CRA expects increased wait times at its contact centres and delays in processing tax returns if a strike takes place, according to its website.

“There are no plans to extend the T1 tax filing deadlines, as a potential strike in no way impedes the ability of Canadians to file their taxes electronically or on paper,” CRA spokesperson Adam Blondin told The Epoch Times via email on Saturday. “Canadians should take steps to ensure their return is filed by May 1, 2023, along with payment for any balance owing.”

CRA did not immediately respond to a follow-up question Monday about T2 tax filing deadlines, which apply to incorporated businesses. The current deadline for business owners is June 15.

Negotiations with the union are scheduled to resume Monday through to Thursday. “We ... remain committed to continuing to bargain in good faith and making every reasonable effort to reach an agreement at the bargaining table that is both fair to employees and reasonable for taxpayers,” Blondin said.

“The timing couldn’t be worse” for a potential CRA strike, said CFIB President Dan Kelly in the release. “The impact on small businesses could be massive.”

Andrew Chen contributed to this report.