January 16, 2023
In this article, we combine data from Part 1 (Results from Delivering Service to Clients) and Part 2 (Infrastructure Supporting Service Delivery) to generate figures which offer a very basic picture of some productivity trends within the CVITP.
Volunteer Productivity
With respect to both measures for volunteers, we make use of our adjusted volunteer estimate. (This tries to correct for the number of staff employed by host organizations which the CRA counts as volunteers.) It should be recalled that there are also people registered as volunteers who greet clients or do other administrative tasks but who do not file returns. We do not make any adjustment for these latter volunteers. Thus, our numbers may understate the number of individuals assisted and returns filed per volunteer tax preparer.
What do the numbers for the two productivity measures show? In both cases, the numbers peak in 2017 followed by declines over the next three years. (This corresponds with a period in which the numbers of volunteers rose modestly.) This declining trend is dramatically reversed in 2022 with a rebound to the initial 2017 peak. (This corresponds with a period in which the volunteer numbers fell.) Although there are several possible reasons for the decline in productivity over the 2017 to 2019 period and for the rebound in productivity in 2022, we will not speculate on the reasons.
Host Organization Productivity
What do the numbers for the two productivity measures show? Both show declines over the 2017 to 2020 period. This corresponds with the steady growth in the number of host organizations over the same period. The partial rebound in 2022 for both productivity measures corresponds with a partial rebound in the number of host organizations after the spectacular collapse in numbers in 2021. Again, while there are a number of possible reasons for the decline in productivity over the 2017 to 2019 period and for the partial rebound in 2022, we will not speculate on the reasons.
Looking Ahead
There are two things which could have positive effects on the productivity measures in future years.
First, there will be a potential increase in the number of years over which EFile and Autofill My Return may be used. During the 2022 tax season, volunteers could use Autofill My Return and EFile for the previous five years, dating back to the 2017 tax return. Should the CRA continue to allow volunteers to continue to EFile as far back as the 2017 tax return, it will mean that volunteers can easily prepare and submit returns for the previous six years during the 2023 tax season. With each subsequent tax season, volunteers will be able to EFile for an additional tax year. This will make it easier to file more prior year returns, especially when combined with the use of the Autofill My Return function.
Second, if the CRA chooses to extend its pilot grant program beyond the three-year pilot period, the financial incentives on offer – modest as they are – starting with the filing of 2020 tax returns may lead host organizations to encourage their volunteers to file more prior year returns.
We would like to see the CRA publish more detailed information on the CVITP. This would include data on the various vulnerable groups the CRA identifies as the chief beneficiaries of CVITP services and on the poverty levels of the recipients of CVITP services. This detail would give us a better understanding as to how well the CVITP is targeting its services to those who need it the most.
Sadly, the CRA seems to be headed in the opposite direction. It has indicated it is dropping the inclusion of CVITP data from the performance indicators included in its annual Departmental Results Reports. Up to now, these reports have been the only consistent source of information on the CVITP provided to Parliament and the public. (Readers will note that we have had to search through many CRA publications to find the additional CVITP data which we share on this site.) With this decision, we worry that Parliamentarians and the public will be left in the dark about the future evolution of the CVITP.