The way Canada collects income taxes appears to be stuck in the Dark Ages, writes Peter Watson.
Most Canadians should have their annual income tax filing completed automatically by the government.
The motivation for my column came from hearing many recent examples of how extremely frustrating it is to deal with the CRA. People will call and have extremely long wait times before their call is answered.
Written requests from taxpayers for information can take weeks to receive a response. In the age of instant communication, that should no longer be an acceptable standard. We appreciate how advanced technology is useful in other aspects of life.
The way Canada collects income taxes appears to be stuck in the Dark Ages — changes are needed.
For most Canadians, there is no additional income to report. If the CRA has all the necessary information, then why does the taxpayer have to provide it again by completing an annual income tax form?
For the relatively small number of people who have additional income or more complicated tax situations, they should be required to provide that additional information.
Countries in Europe are far more advanced than Canada. Most taxpayers in those countries are not required to complete an annual income tax form.
In my view, duplication here in Canada is not necessary.
It is time for the CRA to be more efficient.
Peter Watson, of Watson Investments MBA, CFP®, R.F.P., CIM®, FCSI offers a weekly financial planning column, Dollars & Sense. He can be contacted through www.watsoninvestments.com
