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CD Howe: The problem with Canada’s automatic tax filing scheme

Researchers at the CD Howe Institute looked at international tax-filing practices and concluded that Canadians will face major tax-complexity challenges.

In “Automatic Tax Filing: A Challenging Idea for Canada,” authors Alexandre Laurin and Nicolas Dahir found that only 32% of potential tax filers receive returns pre-filled by the CRA using third-party data to assess their taxes accurately. will be able to do. liability.

better option

The authors believe that a more targeted solution to the narrow issue of vulnerable Canadians receiving cash benefits would be preferable to automated tax-filing.

“Despite the practical challenges, reducing the need to file taxes to claim benefits from eligibility is facilitated by setting up a new body to provide income-tested benefits to Canadians in particular, government assistance programs.” would better meet the poverty-reduction objectives of the U.S. that are now tied to tax filing,” Laurin and Dahir concluded.

The full report is here: https://www.cdhowe.org/public-policy-research/automatic-tax-filing-challenging-idea-canada.

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