Battle brews between CRA and the auditor general over COVID program payments

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The CRA broke with longstanding tradition of agreeing with all the auditor general\u0027s recommendations, saying they only \u0027partially agreed\u0027

With two milquetoast words contained in the response to Auditor General Karen Hogan’s report on COVID-19 benefits published Tuesday, the Canada Revenue Agency and Employment and Social Development Canada sent a shock wave across the federal government.Start your day with a roundup of B.C.-focused news and opinion delivered straight to your inbox at 7 a.m., Monday to Friday.By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc.

But top CRA officials said that number is “overstated,” based on “unreliable indicators” and is likely full of “false positives,” according to both a document provided by the agency to the federal public accounts committee in November and a background briefing with the National Post Wednesday. “This assessment could have been used for the purpose of either halting future claims or identifying applicants for post-payment verification.”

“Our view is that using the GST/HST data on its own as an indicator of risk is necessarily going to lead us down the wrong path,” a senior CRA official said on background Wednesday. But that wouldn’t be “cost effective” and the agency is prioritizing “high risk” files to maximize its returns, a top CRA official said.Article content

 

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