Automatic tax filing could see Canadians get billions in unclaimed benefits: PBO

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more than a billion dollars every year that is how much an automatic tax filing system could net Canadians who aren’t claiming all the credits and benefits they’re due when they file their tax returns according to the federal fiscal Watchdog from the Canada child benefit Canada workers benefit and the Canada carbon rebate to GST or HST tax credits it all totals billions over the years in unclaimed benefits now the bulk of it is owed to people who don’t file their taxes at all an estimated 7 to 12% of Canadians many are from lower income and vulnerable households automatic tax filing was first proposed in the Liberals 2023 federal budget the CRA said last month it would start rolling out invitations to the service this summer the pilot program targets financially strapped households as well as those with gaps in their filing history but the Parliamentary budget office notes there isn’t a clear timeline detailing when the agency would start processing autom tax returns for now we know the federal Revenue Agency is also expanding its simple file by phone system which involves CRA agents asking simple questions over the phone to come up with a refund estimate by the time the Call’s over expanding that program is expected to cost $2 million over two years by contrast the PBO figures automatic tax filing would cost 57 million in administrative costs to run the system over 5 years but it’s hard to estim estimate because there are a lot of unknowns Ann gaviola Global News Toronto

Rolling out an automatic tax filing system would mean Canadians receive more than a billion dollars each year in currently unclaimed benefits from not filing their tax returns, according to the federal fiscal watchdog.

The Parliamentary Budget Officer (PBO) published a report Thursday looking into the impact of automated tax filing from the Canada Revenue Agency.

First proposed in the Liberals’ 2023 federal budget, the CRA said last month it would start rolling out invitations to the service this summer. But the PBO notes that there has been no further indication about a timeline regarding when the agency would begin processing automatic tax returns.

Global’s Anne Gaviola has the story.

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35 COMMENTS

  1. Canada tax it's citizen and have one of the richest oil reserves and other resources to make money, yet citizens are homeless and jobless and low education levels it's very obvious that canada is the most corrupt nation on the planet right now

  2. Those that don't know they owe more then what they would get back so they don't care. Fun fact most accountants are cheaper and better than HnR block. Mine got me 5 grand back doing 5 years that I never filed, now knowing what I know, plus charity donations I got back 2200 this year, I'll never not file again and I get to save some me puppies at the same time!

  3. Let's stop finding ways to make people lazier and more dependent … frankly if you can't be bothered to file a piece of paper to get tens of thousands in handouts you don't deserve it… goes with making voting too easy… i prefer people have to take the time to learn where the voting place is and go … Canadians are too dependent on government for every day activities… grow up and do some adulting!

  4. Even if this was true, they’ll get that money back at the grocery store, the gas pump, etc. this country is become a f*cking laughing stock. They can’t even protect $20 million in gold at an airport. but on the good side, some Canadians contractor vehicle stolen well agencies can’t do a darn thing about it. Good job everybody. The only thing the agency can do is tell you where the vehicles end up in certain countries.

  5. We have the disaster that is the Phoenix payroll system for federal employees and an app that was supposed to cost $80,000 ending up at $60,000,000 but sure, the federal civil service can definitely implement this system.
    Some guy in jail will get a refund for $1,000,000 and a grandmother on struggling on CPP will get a tax bill for the same and no one will be able to explain or correct either error.

  6. With computers and online filing, why hasn’t this been done already, whether digitally or on print, Canada is slow in this sense. Couldn’t our employer just sent CRA our tax slips/investment and make them do all the work since social services are on the rise now! If we qualify for their never ending changes in added or new benefits, since they can make adjustment to their whim, they can do all the work!
    I never understood why I have to file it, or pay pubic tax services and then end up paying if I have an owning balance. This should have been automatic and seem-less along time ago.

  7. The government doesn’t do you any favors. Just a way to expand government and buy more liberal votes. Anyone with half a brain can file taxes it’s not hard.

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