Podcast: Automatic Tax Filing - Will It Work?

Last week Taxpayers' Ombudsperson François Boileau  tabled his annual report:  In Pursuit of Better Service: Taxpayers Deserve More.  once again, it was nothing short of scathing, as CRA received its highest number of complaints in the last three years.  Calling our “completely nuts” Income Tax Act a potential barrier, he is nonetheless pushing for automatic tax filing as a potential solution.  A new episode of Real Tax News with Evelyn Jacks & Friends available next week, will feature guest Gillian Petit, Ph.D. - author of a great report, Welcome News for Lower-Income Canadians, but There’s More to Do - which takes a deeper dive.  Consider the following:

On April 23rd, the height of the rush to the April 30 filing deadline, the CRA launched an online public consultation, requesting feedback on service improvements.  Worse, the feedback period closes on June 18 and that’s only one day after the June 17 proprietorship filing deadline. It would appear to be unfortunate timing considering professionals file 58% of all returns.

According to the CRA’s 2018 tax season filing statistics released this week, just over a million returns were filed in the week after April 30, with a total of 26,210,167 received so far this season. But, considering CRA accepted nearly 30 million returns during the 2017 tax season, there’s no time for tax pros to put up their feet just yet.

Possibly even more dreaded than the tax filing season is the tax audit season! But, when you know your taxpayer rights and have confidence that your records are audit-proof, you are empowered to face any audit knowing you’ve done your due-diligence. Working with an experienced tax specialist is a good defence, too.

Invest in your continuing professional development for 2019, by marking your calendars for Knowledge Bureau’s 2019 live events. May is chock full of great events starting with the Vantage Series that took place this morning in Toronto. Next up: the CE Summits that begin at the end of the month. This tour features brand new sponsor CIBC, cross border expert Dr. Dean Smith, long term care planning expert Karen Henderson, and a post-budget overview for 2019 from Knowledge Bureau President Evelyn Jacks.

Lorne Jackson, Knowledge Bureau Undergraduate, CFP, CEA, CKA, and President of the Canadian National Christian Foundation (CNCF), Financial Discipleship Canada works with over 40 Canadian registered charities. After 25 years in the financial services industry, Lorne sold his company and left the "for profit" world in 2002 to create the CNCF, and recently decided to take the Introduction to Strategic Philanthropy certificate course with Knowledge Bureau.

Running out of money or the inability to maintain a desired standard of living is a very familiar concern for most Canadians. It’s an issue that needs to be addressed, not only by the government, but also by wealth planners who have an opportunity to work with senior clients in overcoming the obstacles they face.