SimpleFile: A Summer Project

Evelyn Jacks

This summer another half a million people were invited to try the SimpleFile pilot project; bringing the total number of invitees to two million potential tax filers of the 2023 tax return.  The project has had minimal uptake so far:  only 50,000 people (0.2% of all tax filers) have used it in the period February 5, 2024 to September 2, 2024.  What’s the objective for this big project?

The Backdrop.  Of Canada’s 32.2 million tax filers, just under 6 million (5,853,800 to be exact) file a nil return.  The CRA is hoping that SimpleFile will help more people gain access to benefit and credit payments by offering an “automatic tax filing service”.  

Specifically, this project targets people who have never filed a tax return or who have a gap in their filing history.  Currently it is an invitation-only service and CRA touts that filing a tax return should take as little as 10 minutes, conveniently from home using the phone or a digital service.

What’s Required? The filer will need to provide some personal information and answer a series of short questions after creating a PIN in My Account.  However, a tax return can still be filed without a PIN using this service.  The tax filer will be provided with an estimate of net income, taxable income and any refund they might  be eligible for, and receive a notice of assessment either in the mail or in My Account.

What Could Go Wrong?  Well, plenty.  If the information is not properly entered or there are errors or omissions specific to the taxfiler’s personal situation (marital status is incorrect, family net income is incomplete, which could affect eligibility for the Canada Child Benefit and other refundable credits; the birthdate is wrong, which can affect access to GST/HST and other credits.

SimpleFile services are available for an unspecified limited time: 21 hours a day, from 6 a.m. to 3 a.m., Eastern time, 7 days a week.

Bottom Line:  Like the pandemic support measures, the proof will be in the post-assessment audit “pudding”.  Will refunds sent in error be clawed back?  Time will tell.

Preserving appeal routes is particularly important – taxfilers will be receiving ongoing communications about their scenarios – hopefully they will know when and where to pick them up in a digital world.  Be sure to invite your clients, family and friends to double check with a professional should SimpleFile go offside.