Wednesday, March 07, 2007

Computer glitch poses taxing problem

By JORGE BARRERA, NATIONAL BUREAU Canoe

Canada Revenue Agency was forced to stop processing tax returns and shut down 50% of the federal government's computing power after it detected problems with its databases containing the recent tax filing history of 25 million Canadians. Online tax services Efile, Netfile and MyAccount have also been suspended until further notice. Canada Revenue, however, moved to assure Canadians the information had not been corrupted, stolen or erased. "It is not as serious as that," said Michel Dorais, commissioner and CEO of the Canada Revenue Agency. "It is minimal if anything happened." Officials and technicians were dumfounded late yesterday over the cause of the problem, which scrambled the way the databases classified information.

As of Feb. 28, the department had received 402,471 paper tax returns, 293,030 returns through Efile, which is used by personal tax agents, and 223,313 returns through Netfile, which is used by individuals.

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