CRA Strike Update

Are CRA Employees On Strike?

No, CRA employees are not currently on strike. More than 35,000 Canada Revenue Agency (CRA) employees went on strike on April 19, 2023, as part of broader strike by 155,000 public service workers. On May 4, 2023, the strike ended.

What Happens If The CRA Goes On Strike?

Many CRA services are expected to be delayed, or even unavailable. Some types of income tax and benefit returns - in particular, returns that are filed by paper - will experience delays in processing. There are also likely to be longer than normal wait times in the CRA’s contact centres.

How Long Is Strike Expected To Last?

There is no determined end date to the strike. Both parties will need to negotiate an agreement to end the strike. While talks broke down after April 19, it has been reported that the parties have resumed discussions as of April 22 in hopes of finding common ground for a deal to end the strike. UPDATE: The strike has ended, as of May 4, 2023.

Will The CRA Strike Affect Tax Refund?

The CRA has said that it will continue to accept all tax returns, even during the strike. Most tax returns are file electronically through the EFILE and NETFILE programs; the CRA expects that such returns will continue to be processed normally, without delay.

Is The CRA Filing Deadline Extended?

No. As of now, the CRA has not extended the deadlines for filing 2022 personal tax returns. Although certain industry groups (and an online petition) have made public statements that the deadlines should be extended, the CRA has not given any indication that they will do so. The deadline for non-self-employed income tax returns is still May 1, 2023. The deadline for self-employed income tax returns is still June 15, 2023.

What happens if I file my tax return after the deadline?

If you file your return late and you owe taxes (i.e. you have a balance owing), you will be subject to a late filing penalty, which is calculated as 5% of your 2022 balance owing, plus an additional 1% for each full month that passes after the deadline (up to a maximum of 12 months).

Keep in mind that if the CRA charged you a late filing penalty for 2019, 2020 or 2021 and has also issued you a formal demand to file a tax return, the late filing penalty for 2022 will be doubled to 10% of your balance owing, plus an additional 2% for each full month that passes after the deadline (up to a maximum of 20 months).

Therefore, even if you can’t pay the balance owing on time, you should still file your tax return before the deadline to avoid late filing penalties.

Canada Revenue Agency also charges non-deductible interest for overdue taxes, compounded daily at 9%.

Can I Still Find An Accountant To File My Return Before The Deadline?

At this point, because the May 1 deadline is so close, it may be difficult to prepare and EFILE your return before then. However, you should contact us as soon as possible if you expect to owe taxes to the CRA, in order to minimize your penalties and interest from filing late.