Original report submitted to the Minister of National Revenue March 2017.

An examination into the sufficiency of information in ruling letters from the CPP/EI Rulings Division of the Canada Revenue Agency.

Recommendation #1

The Taxpayers’ Ombudsman recommends that the Canada Revenue Agency provide information in the Canada Pension Plan (CPP) and Employment Insurance (EI) rulings letters that workers and payers have the right to request a copy of the CPP/EI Rulings Report, and provide instruction on how to request it.

CRA’s response

The CRA agrees in principle with the recommendation and will conduct a pilot prior to making a final decision regarding full implementation.

2018 update

The implementation of this recommendation is still in progress and will be fully implemented by the end of September 2018.

The CRA revised its ruling letter to include a verse to inform workers and payers involved in a CPP/EI ruling of their right to request a copy of the CPP/EI ruling report and to include instructions on how to request it. The revised ruling letter was initially piloted in one region from July to September 2017.

The results from this pilot were inconclusive as they did not provide sufficient information on the potential impact to the program. As a result, a decision was made to conduct a second pilot in another region from October to December 2017, which found that the inclusion of the revised verse generated an increase in the number of ruling report requests.

Based on the findings of the second pilot, the CRA decided to include the revised verse in all of its decision letters, which will be implemented by September 2018.

The CRA’s implementation plan includes updated training for all rulings officers to ensure they understand their roles and responsibilities related to the provision of ruling reports.

2019 update

The CRA has fully implemented this recommendation as of the end of September 2018.

Since September 26, 2018, the CRA’s ruling letters include a verse to inform workers and payers receiving a CPP/EI ruling decision of their right to request a copy of their ruling report and provide instructions on how to request it.

Program procedures related to post rulings activities have been updated and training was provided to CPP/EI Rulings staff to ensure they understood their roles and responsibilities related to the provision of ruling reports.

Recommendation #2

The Taxpayers’ Ombudsman recommends that, where applicable, the Canada Pension Plan and Employment Insurance rulings letters inform the workers and payers that an amount or over-contribution may result from the decision.

CRA’s response

The CRA accepts this recommendation.

2018 update

The CRA has fully implemented this recommendation.

The Have you received a CPP/EI ruling webpage was updated on June 23, 2017, to provide information on this topic.

The CRA amended all of its ruling letters as of June 30, 2017, to indicate that if the worker or the payer has questions on the consequences of the ruling, they can:

• visit the Have you received a CPP/EI ruling webpage; or
• contact the CRA for more information.

The ruling letters provide the CRA’s toll-free numbers for individual tax inquiries, businesses, and self-employed individuals.

Recommendation #3

The Taxpayers’ Ombudsman recommends that the Canada Revenue Agency updates the relevant sections of its publications and webpages to clearly communicate with the workers and payers involved in a Canada Pension Plan (CPP) and Employment Insurance (EI) ruling about what they need to do after a ruling is made, including the steps required by workers and payers to pay any outstanding CPP contributions and/or EI premiums.

CRA’s response

The CRA accepts this recommendation.

2018 update

The CRA has fully implemented this recommendation.

The CRA’s webpage Have you received a CPP/EI ruling was updated June 23, 2017. The content is now directed specifically to payers, employers, employees, and self-employed individuals.

The page provides information on what the taxpayer needs to know if a worker’s employment status changes, and includes:

• links to information on how to pay outstanding CPP contributions or EI premiums;
• a link to information on how to appeal a ruling; and
• a new paragraph directing individuals who have received a CPP/EI ruling to the CRA’s Have you received a CPP/EI ruling webpage.

The RC4110 Employee or Self-employed guide was updated to include a new paragraph that refers workers and payers involved in a ruling to the CRA webpage Have you received a CPP/EI ruling. This webpage provides information on what to do after a ruling is issued.

Recommendation #4

The Taxpayers’ Ombudsman recommends that the Canada Revenue Agency continue to include in their Canada Pension Plan (CPP) and Employment Insurance (EI) rulings letters:

1. the name and telephone number of the rulings officer and an invitation to contact the rulings officer to receive an explanation of the rationale behind the decision; and
2. reference to the "Have you received a CPP/EI ruling?" website.

CRA’s response

The CRA accepts this recommendation.

2018 update

The CRA has fully implemented this recommendation.

The CRA’s ruling letters continue to include the contact information for the ruling officer assigned to the individual’s file. The ruling officer will be able to answer questions related to the file as well as to the decision rendered.

The CRA’s ruling letters were amended to indicate that if the worker or the payer has questions, they can visit the Have you received a CPP/EI ruling webpage which was updated June 23, 2017.

Recommendation #5

The Taxpayers’ Ombudsman recommends that the Canada Revenue Agency determine whether changes can be made to increase efficiencies to allow for the inclusion of an explanation of the relevant factors within each rulings letter.

CRA’s response

The CRA accepts this recommendation.

2018 update

The CRA fully implemented this recommendation by the end of June 2018.

The CRA’s ruling letters were amended as of June 30, 2017, to include the following changes:

• general information on CRA’s approach to how it determines the status of employment of workers and/or if workers and payers are dealing at arm’s length; and
• reference to the RC4110 Employee or Self-employed guide and/or the CPP/EI Explained article, Not dealing at arm’s length for purposes of the Employment Insurance Act (EIA), available on the CRA’s website.

In addition, a review of all the CRA’s ruling letters was completed to include links to existing CPP/EI explained articles, when relevant.