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:

Last month Statistics Canada released a report titled “Labour in Canada,” citing statistics from the 2016 census. Employment rates, average earning potential, part-time work trends, and the number of older workers still in the workforce all point to promising opportunities for employment in the tax and financial services industries especially, which offer high earning potential for this demographic.

Business leader, coach and Knowledge Bureau author Joanne Sigurdson hosted a workshop at Knowledge Bureau’s fall CE Summits that wowed the audience with new thought leadership and inspired the business builders who attended to “think bigger” as they contemplate their plans to expand their careers and businesses in 2018.

Canadians working in the financial services have been the largest contributor to the national earnings increase, according to Statistics Canada November 30 survey on Payroll, Employment, Earnings and Hours.  The gains were particularly impressive in the professional, scientific and technical services: average weekly earnings were up 3.4% to $1,354; growth driven by accounting, tax preparation, bookkeeping and payroll services with notable increases in Ontario and Quebec.

The majority of tax and financial services professionals agree: CRA has stepped up audit activity on returns of average Canadian tax filers.  Knowledge Bureau Report’s November poll found this trend emphasizes the value that financial and tax preparers can offer to Canadian taxpayers, as they grapple with a less-than-satisfactory experience with their tax department.

Canada Revenue Agency (CRA) has again come under fire for its policies for assessing the claims of people with Type 1 diabetes who previously qualified for the Disability Tax Credit (DTC). However, it is defending its policies as being consistent.

While Canada Revenue Agency is under fire for failing to provide timely and accurate information to taxpayers, it’s clear that tax and financial advisors have an important role in filling that gap and in the process demonstrate unique value to their clients as trustworthy resources.  But the industry, too, must step up its knowledge in light of increasing complexity.