Changes to Paper Filing Disempowering

Last tax season, only 7% of all Canadian tax filers filed on paper. The CRA is pushing for zero. It continues to steer the holdouts to digitized filing by adding lots of obstacles. Most recently, it is removing almost all the schedules from the tax return package it mails. This seems unfair to people who paper file because they can’t afford a computer and internet, distrust the security of online filing and those who are neither tax or computer literate. Here’s what they are up against:

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Knowledge Bureau graduate Jim Gunn of Ontario pursued his Real Wealth Management (RWM™) designation to complement his other credentials, which including CFP, RRC, CEA, CPCA, and Insurance Broker. His goal in obtaining his RWM™ was to help his diverse client-base with niche issues using a holistic approach while building trust and delivering value. Here’s his story:

Tax evasion will take precedence over tax reform according to the federal Finance Minister, who attended a June 5 meeting of the Senate Finance Committee. That’s the same day the Joint Chiefs of Global Tax Enforcement (J5), which the CRA is a part of, celebrated its first anniversary.

Monday June 17 is the tax filing deadline for proprietors and many of them will owe money to the CRA. In fact, over  5.6 million returns filed as of May 27, 2019, had balances due averaging $5244. Three things must be managed if you owe: interest on late payments, potential offsets and adjustments, and your relationship with the collections office. 

The Department of Finance Canada and the CRA defines the principal function of the tax system as a means to “raise the revenues necessary to fund government expenditures.” Of course, it is not quite that simple, as the tax system is also used to achieve public policy objectives by administering preferential tax rates, exemptions, deductions, deferrals and tax credits. The question to be answered, post-tax filing season, is whether all taxpayers claimed their fair share.

The early bird registration deadline for the 2019 Distinguished Advisor Conference in Puerto Vallarta is coming up on June 15. Be sure to check out the outstanding guest speaker list who will address the theme: Powerful Competition: The Secret to Economic Resilience.