In a Digital World, Average Tax Refunds on the Rise

Beth Gradon

The latest tax season filing statistics from CRA show that tax refunds have risen even higher now that more Canadians have filed. Out of the 27.1 million filed, 15,345, 235 refunds were issued, averaging $1,994. That’s a lot of taxpayer money being held onto by the CRA, and an important opportunity for tax professionals to focus on tax-efficiency to reduce these withholdings now!  Further, only 7% of returns are now being filed on paper.  Here are more interesting tax facts:

Returns received from February 7, 2022 to May 16, 2022

Filing method

Number of returns

Percentage of total

EFILE

    15,000,759

58.6%

NETFILE

      9,179,554

33.9%

File my Return (FMR)

           48,586

  0.2%

Total - electronic

   25,128,899

92.7%

Paper

      1,981,189

  7.3%

Total - all methods

    27,110,088

100%

The number of electronically filed returns has has settled slightly from the 94% of overall returns earlier in May, to 92.7% as of the CRA’s May 16 numbers. However, this is still an increase from last 91%. Our recent poll revealed that most tax pros disagree that electronic filing should become a CRA requirement, but more Canadians and their tax practitioners are beginning to embrace this option.

 

Returns processed from February 10, 2022 to May 16, 2022

 

Number of returns

Total dollar value

Average amount per return

Percentage of refunds

Refund by cheque

       3,178,980

    $5,905,938,906

 $1,858

  21%

Refund by direct deposit

     12,066,255

  $24,488,755,643

 $2,030

  79%

Total refunds  

     15,245,235

  $30,394,694,549

 $1,994

100%

Balance owing

       6,545,727

  $43,727,793,347

 $6,680

n/a 

Nil return

       4,112,890

n/a 

n/a

n/a

 

Bottom Line:  Now is an excellent time to train to help tax filers pay the correct amount of tax and no more both for their 2021 tax returns, which can be adjusted for errors and omissions, and in planning for their 2022 tax liabilities.      

 

Additional educational resources: With tax seasons 2022 winding down, it’s the right time to change gears and focus on how you can help reduce your clients’ taxes and build wealth this year and beyond.  If you missed the May 18 Virtual CE Summit, there’s still an opportunity to access the incredible education with the Advanced Retirement & Estate Planning online course, featuring live speaker recordings. Save $200 on tuition until May 31!