Tax agency employee suspended after taking complaint outside 'chain of command'

As a self-described "new Canadian," Jeff Yuan claimed he felt he owed a "duty of service" to his adopted homeland.

That's why the former Canada Revenue Agency research and technology advisor said he wrote directly to the agency's head to raise flags about what he saw as a waste of taxpayer dollars caused by "incompetent CRA employees."

But despite a seemingly encouraging reply from then-CRA commissioner Andrew Treusch, Yuan was suspended twice for insubordination for going outside the CRA's "chain of command." 

'A zealousness that became insubordinate'

The Vancouver man's ordeal is detailed in a decision released this week by the Federal Public Sector Labour Relations and Employment Board — which heard Yuan's grievance of a pair of two-day suspensions from 2016.

Board member Bryan Gray dismissed the first suspension because the commissioner left Yuan with the impression his input was actually welcome. But Gray said the second was warranted, because by then Yuan's direct managers had told him in no uncertain terms he was violating "established communication protocol."

"[Yuan] is honourable in his motivations to serve his 'new country' (as he put it) with diligence and vigour. He testified from his heart about his grave concerns over poor management at the CRA, which in his opinion wasted vast amounts of taxpayer dollars on projects not worthy of public support," Gray wrote.

"However, his passion for excellence in his work led to a zealousness that became insubordinate with the repeated harsh criticisms of his manager suggesting that she was incompetent."

Questionable research and development claims

According to his LinkedIn page, Yuan left the tax agency in October 2017 after nearly 15 years.

The labour board decision does not detail the specifics of his concerns, but in his first letter to Treusch, Yuan claimed the CRA's Scientific Research and Experimental Development program was "fraught with integrity problems."

He included a link to a Globe and Mail article titled Flawed R&D Scheme Cost Taxpayers Billions. The story — by reporter Barrie McKenna — said the program was beset by a "flood of questionable tax claims." 

"Money is often paid out to decidedly low-tech and routine manufacturing, such as baking gluten-free cake, making injection-moulded auto parts or growing potted roses," McKenna wrote.

"Carefully documented and presented as scientific investigation, this kind of work is worth millions in government cash."

Yuan told Treusch CRA staff were working "very hard trying to improve the integrity of the program," but what was needed was a review by "impartial external R&D experts such as university professors (instead of accountants), who have no self-interest in maintaining the current status quo."

Treusch wrote back 10 days later, thanking Yuan for his "kind words" and saying it was "with the help and suggestions of all employees like you that we have been able to accomplish so much."

'Taxpayer ... will always be my first priority'

Despite Treusch's warm words, in the months following, Yuan was warned again and again about writing directly to senior officials.

"Jeff has a history of writing to the top every opportunity he gets," his direct boss wrote in an email to other managers in the months before Yuan's suspension.

"His messages are biased, disrespectful, anti-authority and anti-management."

Thinking he had an ally in Treusch, Yuan wrote him in 2016 to say he had been repeatedly told to resolve his complaints "at the lowest level."

"I am not so interested in protecting/advancing my own interest. The interest of the taxpayer, and the integrity and the reputation of this organization is and will always be my first priority. I believe this also true for every public servant who takes pride in their service to this country," Yuan said in one email.

He wrote in another: "It is very sad that in order to alarm the agency of severe potential wrong doings, an employee has to be forced to confront his supervisor, the perpetrator of potential wrong doings, directly."

Treusch, who was appointed as CRA commissioner in 2012, retired from the agency in June 2016.

In the months before his departure, he staunchly defended CRA's handling of an offshore scandal revealed through CBC reporting involving a secret "no penalties" offer to wealthy tax dodgers.

'Clear disregard' to management instruction

According to the decision, Yuan claimed that a colleague who was distressed by the same problems became ill and died of a stress-related illness. He also pointed to internal office emails "in which he and colleagues criticized office decisions and client projects."

The letter explaining Yuan's suspension says he was punished for writing directly to senior officials "in clear disregard to instructions from local management."

The letter cites the CRA's code of integrity and professional conduct which states that employee "interactions must project professionalism, courtesy, and respect, both with the public, and with each other."

The CRA said it would not be able to provide a comment on the decision until Friday.

Franco Terrazzano, the federal director of the Canadian Taxpayers Federation, said his organization intends to follow up on the complaints Yuan raised in his emails to the former CRA commissioner.

"In general, when a government employee tries to prevent the waste of taxpayers' money, they should be treated as a hero — not a villain," Terrazzano told the CBC.

"I think the whole process underscores the need for a culture change within government. There needs to be whistleblower protection for government employees who are trying to stick up for taxpayers. And not just welcomed in words, but welcomed in practice."