Article

Exploring digital barriers to tax filing

Tax filing can often boost income for people in poverty; Rise Calgary’s Nancy Cobber explores why some people don’t file

21 February 2023

As tax season begins to flood our feeds at this time of year, it is important to acknowledge many Canadians still face barriers in filing their taxes and accessing income-boosting benefits like the Canada Child Benefit. The tax filing process is intimidating, complicated, and the Canadian Revenue Agency’s commitment to modernization and digitization may be leaving many Canadians, including seniors and people with disabilities, behind. 

In 2020, the Government of Canada started implementing a singular digital approach to the taxation systems with aims to simplify systems navigation to improve access and provide integrated service delivery for Canadians. However, research indicates many taxation services and resources are under-utilized often due to physical, social, and structural barriers.  

Over the past few years, there has been an increase in the use of technology to enable participation virtually and promote elements such as inclusion, accessibility, security, simplicity and meaningful connection. Despite the attempts to promote involvement in the digital world, we need to acknowledge that many Canadians struggle with using computers and other technology, and some may not have access due to cost.

Did you know Canada has among the highest internet costs of countries around the world?

https://nationalpost.com/news/canada/canadas-wireless-costs-continue-to-be-the-highest-or-among-the-highest-in-the-world-finnish-report

Digitalization of services may be creating an additional barrier for Canadians filing their taxes. Individuals require access, capacity and digital means for equitable participation in social, economic, and public life. In fact, the Canadian Revenue Agency’s own research on barriers to accessing digital services says that:

  • 43% of people are concerned with sharing personal information electronically
  • 37% of those surveyed lacked digital literacy skills to participate in tax filing services
  • 25% of people are not equipped with the knowledge and skill to navigate tax support information.

Through education, connecting and support with asset-building, we can help Calgarians facing digital challenges build their autonomy and secure their income and assets through tax filing. This is the goal of Rise with its tax filing clinics. It focuses on empowering Calgarians to unravel their income paperwork and gain access to the Canadian Revenue Agency system. We know, communities have the power to transform individuals' social, economic and public lives. Community Volunteer Income Tax filing is an excellent example of how acknowledging “my neighbours strength is my strength” changes lives and brings us all closer to a Calgary without poverty.

In 2021 almost $179 million in refunds and benefits were paid to Albertans using free tax filing clinics.

A number of Calgary agencies are stepping up to bridge these divides by promoting digital literacy and supporting Calgarians to ensure taxes get filed regularly. There are also many tax resources to support Canadians and eradicate the social and structural barriers they may be experiencing. Let’s utilize these great resources to move individuals and families from scarcity to strength through strategizing for the future, further promoting positive social change in their lives.

Resources

  • Rise Calgary’s tax filing services are free for people who are living on a low income.
  • Community Volunteer Income Tax Program is a collaboration between community organizations and the Canada Revenue Agency, offering free tax clinics for individuals who have modest incomes or simple tax situations.
  • The income tax system is an important way for the government to deliver benefits, like the recent Alberta affordability payments, Canada Child Benefit and GST refunds. By not filing, many individuals and families may be losing out on thousands of dollars in benefits. Learn more about tax filing help for Calgarians.
Two people receiving financial coaching from a third person.

Filing taxes is required to get Alberta's affordability program benefits

The personal income tax system in Canada has become an important way for the government to deliver income support benefits, like the Canada Child Benefit, GST refunds and the new Alberta affordability program. By not filing, many individuals and families may be losing out on thousands of dollars in benefits. But, help is available from free tax filing clinics around Calgary.

Tags

Attribution