September 5, 2024
In this final part of The Evolution of the CVITP – 2023 Update, we look at some factors that may impact on productivity in the coming years.
There are two factors which could improve CVITP measures of productivity.
1There will be an increase in the number of years over which EFile and Autofill My Return can be used.
During the 2024 tax season, volunteers could use Autofill My Return and EFile for the previous seven years, dating back to the 2017 tax return (i.e. 2017 to 2023 tax years). 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.
(Given this, it is somewhat worrying to note that in the last two CVITP year-end surveys conducted by the CRA [2022 and 2023], only 35% of respondents consistently confirmed they make use of the Autofill My Return function.)
2If the CRA chooses to regularize its grant program after the three-year (2021-2023) pilot project and its one-year extension (2024), the financial incentives on offer – modest as they are – starting with the filing of 2020 tax returns may lead more host organizations to encourage their volunteers to file more prior year returns.
However, there are two factors which could have negative effects on CVITP productivity in future years.
1While the pilot grant project has not achieved its objective of an annual 5% increase in the number of host organizations, it has been a factor in encouraging many community-based organizations to continue providing the free CVITP service after the pandemic. If the CRA drops its grant program after the extension of the pilot period in 2024, most existing host organizations will lose the only consistent source of funding for operating their clinics which may reduce their incentive to continue providing this service.
2As the CRA experiments with automatic tax filing, it risks burdening host organizations with additional work for which they would not be remunerated. How so?
Many of the initial clients targeted for automatic tax filing will be current CVITP clients. This is because the CRA will, in the initial stages, will limit this service to low-income individuals who consistently file simple returns and it already has good data on many CVITP clients which meet these criteria. As part of the automatic tax filing process, the CRA will likely send these individuals pre-populated returns seeking their concurrence with the results. (The CRA would want to do this if only to avoid potential tax evasion on undeclared income.) In such a case, individuals who do not understand their pre-populated returns or what is being asked of them may approach CVITP volunteers at host organizations to get their advice. Even if the grant program is maintained, there would likely be no financial incentive offered by the CRA to host organizations to give this new but related service.
Look for a new feature coming soon on this website: The evolution of the CVITP in each of the provinces and territories!