Boileau's review found the problem has been occurring because the onus is on the taxpayer to send proof of updated status to the CRA. However, it takes the CRA 14 weeks or more to update status information, resulting in temporary residents not receiving CCB payments while the CRA processes this information.
“Many temporary residents rely on the CCB to make ends meet,” said the Office of the Taxpayers' Ombudsperson in a statement. “While waiting weeks for the CRA to update their file, single parents still have to feed their children and families still have to pay rent. This can be very difficult or impossible without the CCB.”
It was also found that the CRA does not notify temporary residents that their payments are about to stop. This can be problematic as some people may not know that updated information needs to be sent to the CRA. This, along with long processing times, could lead to wait times of over four months for payments to restart. The CRA typically sends retroactive payments, as well.
Wait times are made worse, the review found, because the CRA processes updated information manually, and also because it does not have an information-sharing agreement with Immigration, Refugees and Citizenship Canada (IRCC) that would enable it to validate temporary resident status information and determine eligibility.
Boileau made 11 recommendations to the CRA, which include reminding taxpayers of expiring immigration status and that proof must be provided to update their legal status; allowing taxpayers to check their immigration status expiration date on their CRA online account; making action items prominent in notices; providing information online on preventing the stoppage of payments and how to get them reinstated; and centralizing the information provided to newcomers.
As well, the CRA should communicate with temporary residents directly in a timely manner; allow correspondence tracking through a progress tracker; inform taxpayers through its Check Processing Time tool of CCB correspondence time; improve process for how immigration status is updated when a gap period occurred; review how long it considers someone a newcomer after arrival; and implement an information-sharing agreement with IRCC, working together for an automated solution for real-time data.
Boileau said in the statement that his office is aware that the CRA and IRCC are in a period of fiscal constraint, but this should not stop the CRA from improving its services “to the most vulnerable, including those who rely on the CCB to help with the costs of raising their children.”
He added that these recommendations were made not only to benefit temporary residents, but that they could help the CRA establish automated processes to reduce reliance on manual processing.
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