QUESTION PERIOD — Finance
Simplified Tax Returns
June 13, 2024
Senator Gold, the Parliamentary Budget Officer published a report this morning about Canadians who don’t file tax returns.
I have been deeply concerned about this situation for a long time, because these people are missing out on a number of support measures linked to tax returns. The child benefit and GST credit immediately come to mind. According to data gathered by the Parliamentary Budget Officer, 3.2 million of the most disadvantaged Canadians do not file tax returns, leaving nearly $1.7 billion in benefits owed to them on the table.
The most surprising part is that the Canada Revenue Agency has information on these people. In some cases, for example, T4 slips were issued. How does the government explain why so little effort is being made to reach out to these very economically vulnerable Canadians?
Thank you for the question. The government is closely monitoring the number of tax returns filed by people who have been invited to use the SimpleFile by Phone automated service. At tax time in 2022, nearly 97% of those invited to participate filed their tax returns and were able to receive the credits and benefits they were eligible for.
In February 2024, the CRA issued over 1.5 million invitations to eligible lower-income and vulnerable Canadians to use SimpleFile by Phone to file their 2023 income tax and benefit returns. The CRA will increase the number of people eligible for SimpleFile by Phone to 2 million by 2025. In addition, this summer, the CRA will be piloting a new automatic income tax filing service that will help Canadians in these particular situations.
Efforts are indeed being made, but these services are not producing the expected results. Some of the 3.2 million people who don’t file a tax return are known to the Canada Revenue Agency, but many are not, perhaps because of a language barrier or because they are experiencing homelessness. The new automated system the government promised is unlikely to reach these people. Would the Government Representative agree —
Thank you for your question. The government has made the media aware of the need to inform Canadians about the many tools available to help them apply for benefits. In addition to these tools, the Community Volunteer Income Tax Program, or CVITP, helps thousands of people get the benefits and credits they are entitled to.
This year, organizations held free tax clinics in person and online. The CRA plans to consult stakeholders, community organizations and tax experts on the next phase of Canada’s automatic tax filing program beyond 2025.
