Fall 2022 legislation can improve tax filing for millions of Canadians
Millions of Canadians can sigh with relief now that they’ve filed their taxes and are expecting an income tax refund. According to the CRA, the average refund this year is nearly $2,000, making tax time an important financial contributor to many Canadian households. With rising global inflation increasing our day-to-day costs with no clear end in sight, Canadians need all the financial support they can get. This paired with Canadians’ increasing desire for digital services brought on by COVID-19 signals a need for change.
Fortunately, the Government of Canada has pledged to simplify tax-filing for the approximately 60% of filers that use a tax preparer to help them submit their returns. In Budget 2021 the federal government stated its intent to amend legislation to permit electronic signature use for certain key tax forms. This may not sound like a game changer for how Canadians can file their taxes, but it is.
For the over 17 million Canadians that work with tax preparers to file their returns, generally you need to physically meet with your preparer to sign tax forms or pick them up and drop them back off after signing. Another common approach is for taxpayers to use traditional mail to receive and sign the paper forms and then send them back. In today’s digital world we can do much better for Canadians.
What if you didn’t have to sign paper forms or mail anything? Better yet, what if you could prepare and file your taxes virtually with your preparer and receive instant access to your tax refund – all without having to leave the comfort of your home? And when it comes time to sign those forms you can do so electronically just like we can nowadays with mortgage documents and in other common day-to-day circumstances. It’s innovations like these that will incent more Canadians to file their taxes and receive the benefits they are entitled to, and in many cases really need.
We’re so close to getting there, but we need the Government of Canada to do its part. The federal government’s commitment to permit e-signature hasn’t been enacted since it was announced in Budget 2021. The government’s earlier pledge was reaffirmed in Budget 2022; however, no timeline was provided indicating when legislation will get amended.
The perfect opportunity to get this over the finish line to make tax filing easier and more convenient for Canadians next tax season is to incorporate e-signature in Budget 2022’s second implementation Bill which presumably will be introduced in the House this fall.
We are calling on lawmakers and government officials to get this done. Pass legislation in 2022 to permit e-signature for tax forms that will allow industry to unleash new and innovative virtual tax filing products and services that combine human expertise with cutting edge technology and unparalleled convenience for Canadians.
Peter Bruno – President, H&R Block Canada
(Headquartered in Calgary, Alberta, H&R Block Canada is Canada’s largest assisted tax preparation firm. During tax season, we have nearly 1,000 locations across the country with approximately 10,000 Associates helping Canadians file their taxes).
