Taxpayers across Canada are pushing back in record numbers. According to newly released data, the Canada Revenue Agency (CRA) received nearly 128,000 formal objections in the 2024–25 fiscal year—almost double the number from just before the pandemic. For many Canadians, this means delays, frustration, and growing concerns about how the tax system is being administered.
So, what’s going on behind the scenes? And why are so many people saying, “Hey CRA, you got it wrong”?
Table of Contents
Objections
When taxpayers believe the CRA made an error on their return—like a reassessment they disagree with—they can file a notice of objection. This kicks off a formal review process, often resulting in months of waiting.
Back in 2018–19, the CRA received around 68,000 objections. Fast forward to 2024–25, and that number has exploded to 128,000. What changed?
Part of the answer may lie in the CRA’s own operations. Over the past few years, Ottawa has poured funding into tax compliance and audit activities, ramping up the pressure on both individuals and corporations. But the appeals branch, which reviews these objections, hasn’t grown as fast—leading to processing bottlenecks.
Delays
The CRA has service standards for how long objections should take:
| Complexity Level | Target Resolution Time | 2023–24 Success Rate | 2024–25 Success Rate |
|---|---|---|---|
| Low (e.g. benefits) | ~6 months | 61% | 76% |
| Medium (e.g. ITCs) | ~12 months | 69% | 71% |
Even though performance improved slightly last year, the CRA still missed its own targets, especially on more complicated cases.
So, if you’re still waiting for a decision? You’re not alone.
Trends
What’s driving all these objections? According to Fred O’Riordan, a former CRA executive and now national tax policy leader at EY, the increase may reflect deeper issues:
- More aggressive CRA audits, often tied to anti-tax evasion funding.
- Poor communication or unclear guidance from CRA call centres.
- A lack of proportional investment in helping taxpayers understand and comply with changing tax laws.
Worse still, when the CRA’s decisions are appealed, it turns out the taxpayer is at least partially right more than half the time.
Outcomes
Between 2017 and 2024, CRA data shows that about 55% of objections were resolved in favour of the taxpayer, either fully or partially. That’s a huge number. And it’s causing concern in the accounting community.
John Oakey from CPA Canada put it bluntly: “That means a lot of people are being forced to object because of incorrect CRA assessments. It’s a waste of time, resources, and taxpayer money.”
In other words, it’s not just about compliance—it’s about quality.
Complexity
One of the bigger challenges is the growing complexity of Canada’s tax code. Even seasoned professionals struggle to interpret the Income Tax Act, and the CRA itself often has trouble applying it consistently. That can lead to:
- Overly aggressive audits
- Incorrect reassessments
- Miscommunication with taxpayers
And ultimately… a massive spike in objections.
Breakdown
CRA’s reported objections include a range of cases:
| Objection Type | Examples |
|---|---|
| Low Complexity | GST/HST credit, child benefits, simple income disputes |
| Medium Complexity | Input tax credits, new housing rebates |
| High Complexity | Large corporate audits, international business disputes |
High-complexity cases can take years to resolve. Meanwhile, everyday Canadians are often stuck waiting months for clarity on basic issues.
Accountability
This isn’t the first time the CRA has faced heat. The Auditor General has flagged the agency before for:
- Call centre delays
- Inaccurate or inconsistent answers
- Lack of transparency in decision-making
And as Canada ramps up compliance efforts—especially under Prime Minister Mark Carney’s government—more pressure is being put on taxpayers, without always providing enough resources to help them meet the rules.
CRA spokesperson Deborah Clery says the agency has increased staffing and resources to keep up with demand. But clearly, it’s still not enough.
If you’ve filed an objection—or are considering it—know that you’re not alone. The process can be slow and frustrating, but it’s a critical tool for pushing back when something doesn’t seem right. As objection numbers continue to climb, pressure is mounting on the CRA to not only enforce the rules, but to get them right the first time.
FAQs
Why are CRA objections increasing?
More audits and reassessments are leading to more disputes.
How many objections were filed in 2024-25?
Around 128,000—almost double pre-pandemic numbers.
Does CRA agree with objections?
Yes, CRA sides with taxpayers 55% of the time on average.
How long do CRA objections take?
Simple cases: ~6 months. Medium ones: ~12 months or more.
What can cause a CRA objection delay?
Staffing issues, audit volume, and tax law complexity.
