The Canada Revenue Agency is blaming "processing issues" after tax refunds were delayed for holders of a First Home Savings Account.
"As can sometimes be the case with new initiatives at the beginning of tax season, the CRA encountered some processing issues with tax returns that included information related to the First Home Savings Account (FHSA) opened during 2023," a Canada Revenue Agency (CRA) spokesperson told CTVNews.ca in a statement.
Launched in April 2023, First Home Savings Accounts allow prospective homebuyers to make tax-deductible contributions towards a future down payment on a home. New account holders can contribute up to $40,000 over 15 years, with annual deposits capped at $8,000. Withdrawals are also tax-free if used towards a down payment.
On the social media site Reddit, several FHSA holders have complained about weekslong delays receiving their and this year.
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"The issue was identified immediately and the CRA worked diligently to resolve it as soon as possible," the CRA spokesperson stated. "We can now confirm that the issue has been resolved and Canadians with an FHSA can now expect their notices of assessment within normal timeframes."
Jamie McIntyre from Richmond, B.C., says FHSA issues have stalled their plans to secure a mortgage and first home.
"I was in the process of obtaining a mortgage and the lender required the most recent notice of assessment," McIntyre told CTVNews.ca in an email. "It has been over a one month delay so far."
Normally the CRA aims to provide a notice of assessment of taxes being filed online. McIntyre says speaking to CRA representatives hasn't solved the problem.
"It was a return for $7,400, which would go towards a down payment, but the main issue was not being able to secure a mortgage without the assessment," McIntyre explained. "I am concerned the rates could change by the time this issue is settled."
The CRA spokesperson said the agency aims to meet its two-week standard in 95 per cent of cases.
"In certain cases, it will take longer than our two-week service standard to process a tax return," the spokesperson added. "We regret any inconvenience that this may have caused taxpayers."
For McIntyre, the inconvenience could have serious consequences.
"I feel like the housing market is constantly changing and becoming more difficult to enter, so not being able to provide a notice of assessment could impact my ability to enter said market before things potentially change for the worse," McIntyre said.
According to Canada's Department of Finance, more than opened a FHSA between April 1 and Dec. 5, 2023.
