I think anyone who has ever tried to fix something even the least bit complicated with CRA sees how this is going to turn into a nightmare. You can spend literally 12-18 months of back and forth with CRA to fix certain items such as disability transfers or spousal support.
It works in some places, but presumably with a more simplified tax code (which I am a strong advocate for). With our tax code and what the government actually receives reporting on, this would not apply to anywhere close to 90% of people.
The government gets no reporting on childcare expenses, employment expenses, rental income and expenses, side gigs or self-employed income, donations, medical expenses and student loan interest among other things. It also does not get updates on relationships so the child benefit people receive will be completely clawed back when they update to common-law or married the household income goes up.
Implemented correctly this can be a good thing. The CRA is currently not able to implement this in a positive way aside from a small portion of people who will otherwise not file a return.
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