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The CRA says it’s using AI — but not for personal tax return decisions - National | Globalnews.ca

April 30, 2026 1 views
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The CRA says it’s using AI — but not for personal tax return decisions - National | Globalnews.ca
As the deadline to file your tax returns expires on Thursday, the surge of artificial intelligence over recent years may have Canadians wondering if the Canada Revenue Agency plans to use it to review taxes. The deadline comes as a report by tax firm H&R Block warned earlier this month that more than half (56 per cent) of Canadians would be uncomfortable using AI to file their taxes. It also found that 90 per cent of Canadians are concerned about the security implications of inputting sensitive financial information into publicly available AI tools.The U.S. Internal Revenue Service, the CRA’s counterpart south of the border, has increasingly been using AI tools in its functioning.A report by the U.S. Government Accountability Office published last month expressed concern over the IRS’s ability to develop and use AI, seeing as the agency lost 20 per cent of its staff in 2025. Story continues below advertisement The IRS’s research, applied analytics and statistics wing, which works on deploying AI, lost 63 employees in 2025. IRS voicebots and chatbots also allow users to get information about their personal accounts, status of refunds, balances due, payment plans and other questions.A 30-country Ipsos survey on AI attitudes released last June found Canada was the least enthusiastic about products and services using AI, with just 31 per cent of Canadians saying they are excited about it. Two-thirds said the idea made them nervous, one of the highest scores among the countries surveyed.“Unlike closed enterprise AI tools that are implemented into companies’ systems for use only by their clients whereby data isn’t shared outside of the company, open AI tools carry both risks and significant limitations when it comes to inputting personal financial information or to help do your taxes,” said Yannick Lemay, tax expert at H&R Block. Get weekly money news Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday. Sign up for weekly money newsletter Get Started By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy. AI tools like ChatGPT are not trained “on the ever-evolving changes to the hundreds of tax credit and benefits available,” Lemay said.“The reality is that every Canadian’s tax situation is unique based on numerous considerations that AI tools won’t have line-of-sight into,” he said.“This can result in Canadians receiving inaccurate tax advice and can lead to missing out on getting the full refund they’re entitled to.” 2:16 AI tax scams are increasing, Canada Revenue Agency says What is the CRA using AI for? More on Canada More videos Outside party may have gained access to Alberta’s elector’s list, agency warns McGill researchers develop ‘life-saving’ way to stop bleeding fast RCMP ask for ‘specific’ tips to help find missing Nova Scotia kids Canadian manufacturing just saw largest monthly growth in 3 years: StatCan Carney promises ‘good news’ ahead of spring economic update Families of Tumbler Ridge victims file lawsuits against OpenAI and CEO Sam Altman Business Matters: Cellphone, internet and TV complaints in Canada up 61% BIV: Big Way Hot Pot chain launching major expansion The CRA is “exploring the responsible use of AI” to increase efficiency, the agency told Global News. Story continues below advertisement When it comes to taxes, the CRA says no decision being made on personal taxes is made by AI.“All tax returns and individual tax files continue to be reviewed and processed with human oversight,” CRA spokesperson Nina Ioussoupova said.“AI is not used to make decisions on personal tax situations.”The agency currently uses 19 AI systems, including a chatbot powered by generative AI tools. The chatbot was introduced as part of the CRA’s efforts at modernizing customer service.While the chatbot “helps Canadians quickly access reliable, general information about the CRA’s programs” and is available 24 hours a day, seven days a week, it does not replace human interaction with CRA employees, the agency said.The chatbot only deals with general information and won’t process individual tax files or address personal tax situations, the agency said.The CRA also uses AI for internal operations. AI is also used to classify and sort documentation and for “corporate functions.”Employees at the CRA also use internal generative AI models for drafting and summarizing internal documents, as well as coding assistants for developers.The CRA, like all federal government departments, is subject to government guidelines on the use of AI. Story continues below advertisement The federal government’s guidelines clearly prohibit public servants from entering any Canadian’s private information into any publicly available online generative AI tools.This is because all personal information handled by federal institutions is subject to the requirements of the Privacy Act.If a government department plans to buy, develop or deploy an AI tool, it must consult privacy officials.The federal government’s Directive on Automated Decision-Making, which applies to the use of any automated systems in the government’s work, applies to artificial intelligence. The directive requires departments to complete an “algorithmic impact assessment,” which ensures that the AI tool being used complies with government guidelines.