Policy Forum: Should the Canada Revenue Agency Also Be a Social Benefits Agency?

Abstract

The Canada Revenue Agency (CRA) plays an important role in the delivery of benefits to Canadians, but should that role be expanded? The speed and ease with which several new income benefits were launched by the CRA during the COVID-19 pandemic have prompted the question of whether the agency should take on a much larger role as a social benefits agency, in addition to tax collector. We review the arguments for and against, noting important weaknesses that already impair the CRA's current role in benefit delivery and that would be exacerbated in an expanded role. On balance, we conclude that an expanded role is not the better choice. We suggest that the CRA might instead enhance one of its strengths—collecting and sharing information—so that other agencies can more effectively administer benefits not directly tied to the tax system.

Keywords: Canada Revenue Agency, benefits, administration