Millions Embrace Digital Filing but Average Refund is Down

Canadians were treated to new technology this year and embraced it soundly: 7.3 million individual requests were received by CRA’s digital service Auto-Fill My Return, and 87% of all returns filed to May 15 used NETFILE or EFILE. However, you may be hearing complaints about smaller tax refunds this year. The averages appear to bear that out.

So far this year, the average refund is $1698 compared to $1734 last year. The removal of the Family Tax Cut may be one contributing factor. Another is the decrease in the middle-income tax rate from 22% to 20.5%.

Those who owed money at tax filing time have paid an average of $4560. According to CRA, as of May 15, 2017, 25,809,133 million returns were filed, less than the just over 28 million filed last year, but the season is not over yet. More returns and payments are expected as taxpayers with proprietorships scramble to get their returns filed by June 15. Here is how the tax filing patterns shake out so far, based on CRA’s reporting:

New information on helping Canadians save money on their personal taxes for tax year 2017 will be covered at the Distinguished Advisor Workshops (DAW) starting next Monday, May 29, in Vancouver. Tax advisors who have clients with assets in the U.S. or overseas, and/or who work with business-owner clients, will be particularly interested in the information to be presented. 

Starting early to plan for tax savings in 2017 adds tremendous value to clients. So does assistance at this time of the year with any post-assessment audit issues. Call Knowledge Bureau to register for the DAW and an opportunity to ask specific questions of experts: 1-866-953-4769 to register or click on this link.

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