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Taxpayers' Ombudsperson Urges Review of Bill C-31 Automatic Tax Filing Provisions
François Boileau warns the "deemed filing" proposal in Bill C-31 could interrupt benefits for lower-income Canadians and urges the House Finance Committee to review it before passage.
Why it matters
OTTAWA, Oct. 5 — Canada's Taxpayers' Ombudsperson is urging the House of Commons Standing Committee on Finance to review the automatic tax filing provisions in Bill C-31 before it is passed, warning they could interrupt essential benefits for lower-income Canadians.
The Canada Revenue Agency (CRA) is pursuing three approaches to automatic tax filing: SimpleFile, deemed filing, and pre-filled tax returns through CRA accounts. SimpleFile is already available but requires a taxpayer's explicit consent, while Bill C-31 would let the CRA file a return on a taxpayer's behalf without their consent or involvement.
Full report
The Ombudsperson's office supports efforts to simplify filing but raised several concerns about deemed filing as proposed: the legislation sets no specific date for notifying taxpayers or filing on their behalf, creating a risk of benefit interruptions; continued participation would ultimately make taxpayers ineligible, since the bill requires them not to have filed in one of the three preceding tax years; and there are no safeguards to verify taxpayer information is accurate before benefit payments go out.
The Ombudsperson, François Boileau, recommends prioritizing pre-filled tax returns through CRA accounts instead. Expected to launch in March 2027, the service would let taxpayers review and approve returns built from information the CRA already holds, and would reach millions more people than deemed filing.
"Helping lower-income Canadians access the benefits and credits they are entitled to is a worthy objective. However, any automatic tax filing system must be practical, effective, and designed to provide uninterrupted access to essential financial support," Boileau said.
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