A local social services group has expressed support for the federal government’s initiative to introduce an automated tax filing system for low-income Canadians, considering it long overdue. Prime Minister Mark Carney unveiled the plan during a press conference in Nepean, alongside commitments to make the national school food program permanent and extend the Canada Strong Pass.
The new system, set to launch in the 2026 tax year, aims to assist in filing tax returns for 5.5 million low-income Canadians by 2028. Peter Tilley, CEO of the Ottawa Mission, hailed the move as a positive step forward.
Advocates have been advocating for such a system for some time. The previous Liberal government, led by Justin Trudeau, initially proposed an automatic tax filing system in the 2020 throne speech, later planning its implementation in the 2023 budget. However, a pilot program following the announcement failed to gain traction.
Many Canadians who owe taxes are legally required to file returns with the Canada Revenue Agency (CRA) annually. Yet, numerous individuals miss out on benefits by not filing taxes, assuming they do not owe the government anything. Jennifer Robson, an associate professor at Carleton University, highlighted that this tendency is common among those with modest incomes.
Robson’s research suggests that the CRA could pre-file approximately one-third of the returns it receives each year based on available data. The Ottawa Mission, in partnership with H&R Block, runs a tax clinic each spring for individuals experiencing homelessness.
Despite the positive outlook, Tilley and Robson have raised concerns about the specifics of the automated filing system. They are eager to learn more about income thresholds, data acquisition processes, and the level of individual involvement in the simplified filing process.
The Ottawa Mission expects the new system to alleviate the workload at their tax clinic and positively impact the individuals they serve. However, both Tilley and Robson stress the importance of understanding the finer details of the initiative, which will be revealed in the forthcoming federal budget announcement by the Carney government.