The idea of the government doing your taxes for you may seem appealing. However, it is far from a magic bullet and its practical application raises important questions.
The Canadian Association of Tax Filers (CARD) brings together leaders in the development of tax software. Every year, we help millions of Canadians complete their tax returns easily and at low cost.
Giving the government the responsibility of doing your taxes would create a conflict of interest. Taxation is based on self-assessment. The taxpayer declares his income and seeks to obtain all the advantages to which he is entitled. His goal: to pay only the taxes he owes to the government.
The government plays the opposite role. Collector and auditor, he makes sure to get every dollar.
Entrusting the tax return to the organization responsible for checking it necessarily puts you at a disadvantage.
The state controls all information, can impose a tax bill and places the burden of verification on citizens even when they are not equipped to do so.
Canadians and Quebecers are entitled to a tax system that respects self-assessment and minimizes their burden. Our members have worked for many years to simplify the process, which is already very different from what it was 20 years ago.
Entrusting the Canada Revenue Agency (CRA) or Revenu Québec (RQ) with the responsibility of doing your taxes would create new problems. They would have to hire thousands of employees to fulfill these new tasks. It would be a major expenditure of public funds that would inflate the bureaucracy, in the midst of a labor shortage, when the problems of recruiting and retaining staff are already being felt.
The automated declaration also raises the question of the security of personal data. The government would find itself compiling more personal information as it struggles to recruit and retain its information technology staff and struggles to computerize its services.
Help the most vulnerable
Our members have a long history of working to improve the situation of vulnerable citizens. We support them so that they have access to all the benefits to which they are entitled, for example the tax credit for people with disabilities or the tax credit for solidarity. ACDR has also put several measures in place to strengthen its support for vulnerable people. Our members offer several free software programs to these clienteles and actively support the free tax clinics of NPOs.
There is still work to be done to ensure that all vulnerable people access maximum returns. In this sense, we continue our collaboration with the ARC and RQ. However, asking the government to do your taxes for you will create more problems than it solves.