Pre Filled Income Tax Form for Canada

Many Canadians and Research Institutes are complaining about the cost of income tax reporting. An estimated $4 to $10 billion is spent annually to comply with Canadian Income Tax, as estimated by the Fraser Institute and Canadian Federation of Independent Business (CFIB).

Some examples of tax compliance are activities are:
*Collecting and storing data for tax filing
*Completing tax forms
*Dealing with CRA for follow up
*Keeping current with changing tax legislation
*Cost of Tax Consultants
*Making Tax Payments

Each year Canadians spend about 7 hours to do the above activities. This places a significant burden on Canadian taxpayers. The compliance cost is about $300 for personal, married, self employed tax payers. It cost about $4,000 for small businesses.

This is very eye opening information, as far as where I stand.

Working on self assessed tax filing for seven hours a day is too much for us. Spending hours to watch a movie, game, seven hours in front of TV or shopping and spending money is what we love to do. Popping $300 for a music player or a phone is exciting, but spending $300 for expert tax advice, which saves us money, is a burden. Definitely our priorities are screwed up.

Here is the difference of working on your income tax with expert advice or not working on your income tax. “Thousands of dollars in your pocket” wth expert advice or send a cheque to CRA. Your return on investment (ROI) is many times on the money you spend for a good tax advice.

Here’s an idea which is currently in effect in Quebec and also being implemented in some States of US. Your income tax return comes pre-filled with your income information from the CRA and you just send them a cheque for taxes owed. You can review the information for accuracy and no tax filing cost to you.

Yes, you will save money in income tax compliance cost, but you might end up paying thousands of dollars that you could claim as tax deduction.