Podcast: Automatic Tax Filing - Will It Work?

Last week Taxpayers' Ombudsperson François Boileau  tabled his annual report:  In Pursuit of Better Service: Taxpayers Deserve More.  once again, it was nothing short of scathing, as CRA received its highest number of complaints in the last three years.  Calling our “completely nuts” Income Tax Act a potential barrier, he is nonetheless pushing for automatic tax filing as a potential solution.  A new episode of Real Tax News with Evelyn Jacks & Friends available next week, will feature guest Gillian Petit, Ph.D. - author of a great report, Welcome News for Lower-Income Canadians, but There’s More to Do - which takes a deeper dive.  Consider the following:

We all know the price of groceries has risen faster than most incomes. Given that, and the promise to address affordability in the last election, the federal government announced an enhancement to the existing GST/HST Credit including a one time top-up. Recall, this has been done before during the pandemic. However, buried in this announcement was an important 2025 tax filing change, as well, another example of “tax change by news release” that makes complicates tax compliance. Here’s what you need to know:

Starting July 1, 2026 mutual fund agents must register and collect the GST/HST on trailing commissions earned if they exceed $30,000 (the small supplier threshold). This news, provided only to “relevant stakeholders” is far reaching and still open to consultation. It may not, in the end, result in a revenue gain for the government, as input tax credits will be claimable. But it will bring to the fore a whole new base of taxfilers to audit in the future. Here’s what to know:

Tax season 2026 has officially started with the release of the 2025 T1 return on CRA’s web pages.  There are over 60 pages that belong to the T1, including accompanying schedules, but in addition,  it is possible that one or more of hundreds of auxiliary tax forms may be required.  There is a lot to know, as the Burden of Proof is always on the taxpayer, and the rigor of professional knowledge required to be in public practice continues to grow exponentially.  Against that backdrop, what is the best way to prepare clients this month, for what is to come as we speed towards April 30?    

Why is professional tax preparation growing in Canada? Taxes and lives are changing constantly, and the shift to a fully digital tax system now requires a full-time commitment to get it right. Errors can cost taxpayers thousands, and the entire relationship with the CRA matters. In 2024–2025, the CRA processed more than 33.2 million individual tax returns, and reported a 47% increase in objections over the previous year. As a result, even “simple returns” now demand technical accuracy, process discipline, and familiarity with Canada’s digital tax environment- making strong foundational filing skills a professional necessity.

The government finally announced the 2026 automobile deduction limits on January 14, 2026, significantly later than in prior years, when the announcements typically came in December.  Here are the new rates, as of January 1, 2026:

As you enter the busiest time of year as tax professionals, there are several deadlines apart from April 30 that you will want to discuss with your clients. Among them is the earliest application date for Old Age Security (OAS).