December 7, 2020
There is no succinct statement of its purpose on the Canada Revenue Agency (CRA) website.
Traditionally, it has been to help individuals on low and modest incomes to file their returns to “meet their tax obligations” (page 12, CRA Departmental Results Report for fiscal year 18/19). However, there is a growing recognition that the CVITP also supports “access to benefits for vulnerable groups” (page 34, Budget 2018). The federal government’s Poverty Reduction Strategy emphasizes that the CVITP helps “to help individuals access benefits and credits to which they are entitled” (Annex 2).
This reflects a change in the function of the return as it has shifted over time. Previously, it was used almost exclusively to establish an individual’s tax obligations each year. Increasingly, it is also being used to apply for and maintain access to various federal, provincial and territorial benefits and credits, some of which are income-tested.
The CRA’s Departmental Plan for fiscal year 20/21 states that the CVITP “provides access to the expertise needed to file a return and apply for benefits and credits.” This is misleading in two ways. The CVITP makes use of volunteers who are not necessarily experts in the income tax and benefit systems of the federal and provincial or territorial governments. There is not even any evidence available that indicates the years of experience CVITP volunteers have in preparing and filing returns for low-income people.
Furthermore, these volunteers are limited to providing assistance with the filing of returns. They do not typically provide any assistance with clients’ applications for federal and provincial or territorial benefits and credits to which the clients are entitled except for those embedded within their returns.
The program has traditionally been targeted to people of modest and low incomes, offering them free return preparation services by volunteers in clinics hosted by community-based organizations. The CRA’s budget for the CVITP has quadrupled in recent years to help reach “vulnerable population segments including seniors, newcomers, people with disabilities, youth and indigenous communities”. The CRA’s suggested use of income ceilings to define eligibility for this free service implies an emphasis on meeting the needs of people with low income.
Based on the foregoing, we believe it is fairly uncontroversial to say that the purpose of the CVITP is to help individuals on modest and low incomes, and especially vulnerable individuals, to file their income tax and benefit returns.
Is the CVITP achieving this purpose? Read here why we think it is presently impossible to answer this question.