Canadian Federal Politics Thread v5

[Erick Estrada]

I can accept that there will always be people that support left and right beliefs which is IMO is a good thing to ensure we never go too far in one direction but I will never understand why anyone would choose to worship the altar of Elon Musk. Do they not realize the reason that billionaires like Musk are fixated on space travel? It's because after exploiting this planet to make their riches they want to get out of dodge as they care very little about anyone but themselves. Without hesitation Elon would step on one of his worshipers like a bug if they got in his way. Why would you idolize that?

[GordonBlue]

I was late getting my taxes submitted, and now it looks like I won't be getting a refund anytime soon. goddammit I'm mad at myself.

At least they're still at the table. hopefully the strike won't last long.

https://www.cbc.ca/news/canada/ottaw...ates-1.6813502

Aylward said last Wednesday most members make between $40,000 and $65,000 a year and are struggling with the high cost of living.

The union's last public wage proposal was 4.5 per cent for 2021, 2022 and 2023.

The Treasury Board last shared an offer to increase wages by nine per cent over three years, a total that mirrors the recommendations of the third-party Public Interest Commission.

[Fuzz]

^
Just checked, my refund came in last night. Wooo!

[Slava]

Honestly, this is exactly the timeframe when they should push for automatic filing. There's an enormous amount of efficiency to be gained here. I mean first choice is consumption tax instead of income tax in the first place, but second choice is at least to have this all completed automatically.

[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.

[Esoteric]

So, if I need a passport renewed, I'm pretty much SOL until they get back?
I've got 4 months until I need to travel - really hoping that this thing doesn't drag on very long.

[Robbob]

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.

Those are probably in the minority. Majority are probably one or two T4s. If you can automate to get through the low hanging fruit, it will that them focus on the less routine ones.

[Street Pharmacist]

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.

I think a very large portion of filers have only T4 income, which shouldn't need you to fill anything out if you've got nothing else to declare

[Slava]

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.

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.

[Wormius]

Originally Posted by Street Pharmacist

I think a very large portion of filers have only T4 income, which shouldn't need you to fill anything out if you've got nothing else to declare

Any interest from a non-registered account gets you a T5. RRSP contributions also need to be accounted for. I guess the banks could just automatically send this all to CRA instead of the account holders. It’s all tied to SINs anyway.

[PeteMoss]

They already offer an 'auto-fill' on most tax software - where it basically just loads in all of the information that the CRA has. All of the tax forms go to CRA as it is - so they have the T4s, T5s, RRSP contributions which likely covers most people. Even the education forms they would have. Then you go in and fill out anything the CRA doesn't have - employee expenses, business income, etc.

They'd need to get rid of some of the boutique credits to up the %'s (digital newspaper subscriptions, Ontario will give credits for low earners on rent and property tax) and also figure something out for work from home costs since that is a lot more common than it used to be.

[Slava]

Originally Posted by Wormius

Any interest from a non-registered account gets you a T5. RRSP contributions also need to be accounted for. I guess the banks could just automatically send this all to CRA instead of the account holders. It’s all tied to SINs anyway.

The do send all that in. If you file your taxes and miss a T5 for example, they're going to tax you on that. That's the point here...CRA has all those documents and you're telling them anything new by collecting it and sending it back to them.

And yeah, they can scrap the boutique tax credits, which are garbage anyway. Put the GST up to 10%, cut taxes across the board, have people file automatically and make life easier.

[Ozy_Flame]

I'm surprised at this point the process of "doing your taxes" isn't simply just validating statements online from the CRA before the tax deadline. And you if something is missed or different, it's up to you to flag it and get it changed.

CRA already has all the appropriate forms and slips, and most people have fairly simple tax return scenarios.

Additionally, this really seems like a process that can be farmed out to AI or bots if the internal resources simply aren't there.

[Wormius]

Originally Posted by Slava

The do send all that in. If you file your taxes and miss a T5 for example, they're going to tax you on that. That's the point here...CRA has all those documents and you're telling them anything new by collecting it and sending it back to them.

And yeah, they can scrap the boutique tax credits, which are garbage anyway. Put the GST up to 10%, cut taxes across the board, have people file automatically and make life easier.

If that’s the case, the most the CRA should need to do is just ask you if everything they have on file is it.

[iggy_oi]

Originally Posted by Slava

The do send all that in. If you file your taxes and miss a T5 for example, they're going to tax you on that. That's the point here...CRA has all those documents and you're telling them anything new by collecting it and sending it back to them.

And yeah, they can scrap the boutique tax credits, which are garbage anyway. Put the GST up to 10%, cut taxes across the board, have people file automatically and make life easier.

Even knowing that your advocacy for consumption taxes isn’t meant to help them anyways, it’s worth pointing out that raising the GST to 10% for everyone to give you a break on your income taxes is probably going to make life much more difficult for low income earners.

[Wormius]

Originally Posted by Ozy_Flame

I'm surprised at this point the process of "doing your taxes" isn't simply just validating statements online from the CRA before the tax deadline. And you if something is missed or different, it's up to you to flag it and get it changed.

CRA already has all the appropriate forms and slips, and most people have fairly simple tax return scenarios.

Additionally, this really seems like a process that can be farmed out to AI or bots if the internal resources simply aren't there.

It’s not even bot or AI level stuff. It’s spreadsheets with basic math functions.

[Ozy_Flame]

Originally Posted by Wormius

It’s not even bot or AI level stuff. It’s spreadsheets with basic math functions.

Easy work for AI and automation to do the heavy lifting for Canadians then.

[Slava]

Originally Posted by iggy_oi

Even knowing that your advocacy for consumption taxes isn’t meant to help them anyways, it’s worth pointing out that raising the GST to 10% for everyone to give you a break on your income taxes is probably going to make life much more difficult for low income earners.

That's why things like the GST credit and exemptions exist. A high GST means a higher GST credit, and reduced income taxes mean that for lower income people they pay less tax as well.

[PepsiFree]

I am definitely 100% on the side people banding together to push for better incomes and better outcomes, but this really does seem like a terrible scenario for the CRA. If there’s one job that is on the razor’s edge of being made obsolete, it’s any who deals primarily with tax filing.

In 5-10 years they will likely need 5-10% of their current staff level. I would be more focused are fighting for some sense of long term job security than I would be for higher wages.

Jobs like these are going to make UBI necessary sooner rather than later.

[Fuzz]

Originally Posted by PepsiFree

I am definitely 100% on the side people banding together to push for better incomes and better outcomes, but this really does seem like a terrible scenario for the CRA. If there’s one job that is on the razor’s edge of being made obsolete, it’s any who deals primarily with tax filing.

In 5-10 years they will likely need 5-10% of their current staff level. I would be more focused are fighting for some sense of long term job security than I would be for higher wages.

Jobs like these are going to make UBI necessary sooner rather than later.

They don't need to lose their jobs, they can then go on to dealing with all those things they don't have time to, like going after creative accounting and offshore accounts attempting to skirt paying taxes. As long as they can bring in more tax dollars than they cost, keep them on.