The Canada Revenue Agency violated its own policy and exposed its reputation to damage when it granted a secretive tax deal to a major corporation, according to documents filed in court.
More than 2,000 pages of highly sensitive government records recently filed in Federal Court expose details of an internal CRA controversy over the tax deal. One CRA manager wrote in the documents that an executive tried to make them support the deal, which was "completely unethical and "wrong."
Despite some CRA employees disagreeing with the arrangement — warning it would lead to lower tax revenues — agency executives went ahead with it in 2019, CRA records show.
"There could be negative reputational effects as a result of the atypical process followed … ," reads the preliminary findings of an investigation by CRA's Internal Affairs and Fraud Control Division, tabled in Federal Court.
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