Quote:
Originally Posted by Mr.Coffee
How do you do full automatic? Yes people generate I assume most of their income from jobs and that can be easily automated. However, they also have a bunch of other ways of generating income that ought to be somehow reported, how do you automate side businesses that deal in cash or offshore investments that trigger tax consequences via foreign banking institutions or, or, or… I don’t think it’s that easy.
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Well you send a statement on say March 15th that says "here's what we have for you" and if you have no amendments, those are your taxes. That probably covers something like 90% of individuals. You're an employee with some RRSP/Investing slips and things like that, which CRA already has copies of anyway. In other words, when you file you're not providing anything new in terms of information for them.
For situations that are different, the onus remains on the individual to file properly. So, for situations where you are self-employed or contract workers, etc.
It's not 100% automation, but it's the vast majority. In the UK, I think this type of system accounts for ~90% of filings, so it can be done. The reason it's not is because of companies like H&R Block and Intuit.