Artificial intelligence may lead to automatic tax filing for some

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Tax News

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AI could help the CRA assess whether there’s sufficient third-party information to accurately calculate a particular taxpayer’s liability

Preparing tax returns is complicated. I think the Canada Revenue Agency should come up with a better way to help. Maybe a GPS device for taxpayers makes sense. During the month of April, while sitting in your car, a CRA-issued GPS

The low acceptance rate by invitees says something about people’s comfort level with the CRA preparing tax returns automatically. This might change over time, as automatic tax filing is taking place more successfully in other countries.In 2022 the C.D. Howe Institute completed a study on the use of automatic tax filing in other countries. Some don’t require tax returns at all from people with simple situations who meet certain criteria.

In the C.D. Howe study, 25 of the 57 countries surveyed have adopted an approach in which the tax authority prepopulates the tax return of an eligible individual with basic information gathered from third parties such as employers, financial institutions and benefit administrators. A preliminary assessment of taxes is done, then the prepopulated return is sent to the taxpayer for review and any adjustments.

 

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