How the CRA Strike Started and its Effects

As of April 19, 2023, over 35,000 CRA employees represented by the Public Service Alliance of Canada-Union of Taxation Employees (PSAC-UTE) were on strike. They were seeking higher wages and more job security as their contract was up for renewal.

Despite the strike, there has been no indication that the T1 filing deadline will be extended beyond May 1st. Certain CRA services may have been delayed or disrupted, leading to potential delays in processing returns and issuing refunds. Therefore, it’s still crucial to have your personal tax return filed this month. It’s recommended that you provide your personal tax information as soon as possible so that your returns can be prepared.

The labor disruption caused certain services to be delayed or unavailable, resulting in longer wait times when contacting the CRA call centers, and the processing of tax returns and benefits, particularly for the ones who filed by paper, may have experience some delay. It’s important to note that the CRA strike wasn’t a free pass to ignore your taxes, so you should still file your taxes on time to avoid penalties for late filing.

Strike Ends

The strike by Canada Revenue Agency workers has come to an end following a tentative agreement between the public-sector union representing employees and the federal government last Thursday. This resolution occurred just three days after the Public Service Alliance of Canada settled its own deal for over 120,000 public servants who were also on strike. As a result, PSAC’s Union of Taxation Employees, which represents CRA employees, has instructed its members to return to work on Thursday.

File Your Tax

The issuing of tax refunds may have been impacted while the CRA was on strike. However, the CRA will process your much-awaited refunds as soon as possible. You can also set up direct deposit through your CRA My Account to receive your refund faster. Despite the strike, you could and should have still filed your taxes. Filing your taxes electronically can take up to 2 weeks for processing, whereas filing by paper can take up to 8 weeks. Therefore, it’s preferable to file your taxes online, so you can process your return much faster than mailing in a paper copy.

The tax returns were still due on May 1, 2023, even though the CRA was on strike. Self-employed individuals who don’t owe taxes have until June 15th, whereas those who owe taxes have a deadline of May 1, 2023. If you’ve missed the tax deadline, don’t worry, as you still have time to file. However, it’s best to file your tax forms as soon as possible.

Consequences of Not Filing Your Tax or Filing Late?

Penalties

Tax evasion is an offense that carries severe repercussions. Canadian tax laws are stringent, and those found guilty of evading their taxes may face hefty fines, penalties, and even incarceration. It is imperative to comprehend the gravity of non-compliance and to fulfill our fiscal responsibilities as law-abiding citizens.

Negative Impact on Society

By evading taxes, individuals directly harm society by depriving it of the financial resources required to maintain and improve public services. Lack of tax payments can lead to a deterioration of essential services, reduced quality of life, and an increased financial burden on honest taxpayers who dutifully contribute their share.

Damage to Personal Reputation

A person’s reputation is a priceless asset, and tax evasion can tarnish it. Once labelled a tax evader, an individual may find it difficult to regain the trust of their community, clients, and business partners. Moreover, the consequences of such a stigma may extend beyond one’s personal life, impeding professional growth and opportunities. Paying taxes is a vital aspect of maintaining a respectable image in society.

Conclusion

Lots of people find it hard to pay their taxes because of multiple debts that are taking away their income. You may need to seek some help if you find yourself in this situation. Getting rid of tax owing and debts together is easier than you think, speak with one of our debt experts at EmpireOne Credit and we can explain the options you may have. We understand that life can be full of challenges, and that’s why we are  here to help. If you want to reduce your debt by up to 80% and stop all interest right away, you should reach out to us. We offer a friendly and confidential service. To start your journey towards financial freedom, call us at (416) 900-2324 to schedule a free consultation with one of our debt experts. Debt-free feels good!