Vancouver organization welcomes tax help for low-income Canadians

The federal government is increasing the number of low-income people who are able to use a service that auto-files taxes for them, ensuring grants and benefits are given to those who are entitled to them.

According to 2023 budget documents, the “File My Return” service, which allows low-earners to have their taxes filed automatically after answering questions over the phone, will have two million people eligible by 2025.

Additionally, the 2023 budget has put money aside to begin a pilot project through the Canada Revenue Service (CRA) that will see “vulnerable Canadians who currently do not file their taxes” have theirs done automatically. The program may be expanded in 2024, the government adds.

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These expanded measures to help low-income people file their taxes are being welcomed by the YWCA of Greater Vancouver, which already has programs in place to help single mothers receive the benefits to which they are entitled.

“It’s already really tough to put together the paperwork and documents required to file taxes even in the simplest form, so any structures that can be set up to make that easier on them would be great,” said Jenn Bateman, the organization’s program manager for Single Mothers Services.

With the federal government looking to help more people auto-file their taxes, Bateman says it can free up resources at the YWCA that would have been directed for that purpose.

“We want to make it as straightforward as possible, especially for those who have really uncomplicated taxes, and then if this is filed on their behalf, or it’s a much easier way to do it, we can kind of refocus our efforts on those that may have slightly more complicated taxes,” she told CityNews.

For low-earning single mothers, which the YWCA often assists, Bateman says they can miss out on a lot of money by not filing their taxes.

“You can talk anywhere from hundreds to over $1,000 depending on income. Then things like GST rebates, this new grocery supplement, the rental supplement, that kind of stuff, that can come in at opportune times when expenses are are out of control, especially in this housing market, especially with the cost of groceries — these are essential relief for our families.”

Further, Bateman adds many single mothers often do not have the time to get their taxes in order.

“The obstacles facing single mothers is not a lack of willingness, but a lack of time or opportunity in order to get these things in order,” she said. “This kind of thing is the straw that breaks the camel’s back sometimes in just adding to be overwhelmed. So, creating systems and eliminating barriers is key in this situation.”

While the benefits and grants can help, Bateman says she would still like to see more done to address the cost of housing and groceries, noting that many clients are still struggling to make ends meet.

Why can’t everyone’s taxes be done automatically? 

A chartered professional accountant says many older adults would also benefit if their taxes are filed automatically, especially if they find technology challenging.

“The government already has filings from their pension administrators, so they know what income Mr. and Mrs. X have. And the returns could be simply assessed automatically by the government,” said Charles Hall with Vancouver-based Hall & Company.

In countries like the United Kingdom and Finland, all citizens’ tax returns are automatically done for them. However, Hall says he’s not sure if that service would be available to all Canadians.

“The government receives automatically from employers everywhere the T4 information that we use to file our personal returns, information that we have from banks on interest or dividends from mutual funds and investments and things like that. So, they actually have most of the information already in their files that probably 70 per cent of Canadians need,” he told CityNews.

CityNews asked the Department of Finance Canada if that would ever be a possibility in the future, but has not received a response.

According to the federal government, 12 per cent of Canadians do not file their taxes, the majority of which are low-income.