A Government That Wants to “Help” File Your Taxes
The federal government has proposed expanding the Canada Revenue Agency’s authority to automatically file tax returns for Canadians — beginning with low- and modest-income earners and eventually expanding to middle-income taxpayers.
On the surface, it sounds simple and even helpful: fewer forms, less confusion, faster refunds. But as anyone who’s dealt with the CRA knows, when the government promises to make things “easier,” taxpayers should read the fine print.
A recent discussion on Northern Perspective between host Ryan and Franco Terrazzano, Federal Director of the Canadian Taxpayers Federation (CTF), sheds light on why this initiative may be far more dangerous than it seems.
The CRA’s Track Record: A Bureaucracy Already Overwhelmed
According to the Auditor General, the CRA only answers about 36% of taxpayer calls, and when it does, roughly 30% of answers are wrong.
That means many Canadians already struggle to get accurate information or support from an agency that is supposed to serve them.
Now imagine giving that same agency the power to prepare and submit your tax return on your behalf—without you reviewing it first.
As Terrazzano put it:
“The CRA acting as both tax filer and tax collector is a serious conflict of interest.”
Taxpayers naturally want to minimize taxes within the law. The government, particularly one carrying more than $1 trillion in national debt, wants to maximize revenue. Those goals don’t align—and Canadians shouldn’t assume the CRA will err on their side.
International Cautionary Tale: When Automatic Filing Went Wrong
In 2010, the United Kingdom tried a similar system. The result?
Over six million taxpayers received incorrect assessments, and a third were overbilled.
If Canada—with its history of system errors, account breaches, and slow response times—attempted the same, the risks could multiply quickly.
Add to that the CRA’s cybersecurity breaches in recent years and it’s not hard to imagine the fallout if automatic filing becomes standard.
If your refund is misdirected or your account is hacked, who takes responsibility?
More Bureaucracy, Not Less
Supporters of automatic tax filing argue it will make life easier and reduce administrative costs. But the reality is quite the opposite.
Canada already employs one CRA staff member for every 800 citizens—six times higher per capita than the IRS in the United States.
Automatic filing would require even more staff, infrastructure, and system support—all funded by taxpayers.
Meanwhile, government technology projects like ArriveCAN, which ballooned from $80,000 to $60 million, remind us just how expensive “digital transformation” can become in the public sector.
Democratic and Ethical Concerns: “No Taxation Without Representation”
Beyond the cost and risk, automatic filing undermines a foundational democratic principle: no taxation without representation.
Taxpayers have the right to review, question, and amend their returns before submission. When the government both prepares and assesses your taxes, that check-and-balance disappears.
You may never even know if the numbers are wrong—or if you could have claimed more deductions or credits. And if you do want to challenge a result, you’ll still need to hire a professional to re-file your return, often months later.
What the Government Should Do Instead
If the real goal is to help Canadians file taxes more easily, the solution is not more bureaucracy. It’s tax simplification.
As Terrazzano put it:
“Instead of creating a tax code that’s almost as long as the entire Harry Potter series, how about we simplify it and keep the rates low?”
Simplifying the tax code—fewer credits, fewer carve-outs, and more clarity—would genuinely reduce compliance costs and confusion. Canadians wouldn’t need the CRA or AI to “automatically” file their taxes; they could simply understand and complete them accurately themselves.
Final Word from a Tax Professional
From where I sit as a Canadian CPA, automatic tax filing is a dangerous expansion of government control under the guise of convenience.
It risks accuracy, fairness, privacy, and democratic accountability—all while increasing bureaucracy and costs.
Canadians deserve transparency and simplicity, not a system where the tax collector becomes the tax preparer.
If you value independence in how your taxes are filed, stay informed, speak up, and keep your returns in the hands of qualified professionals—not an automated bureaucracy in Ottawa.
