Why Ontario and BC Perform Poorly Compared to New Brunswick and PEI
In a recent article on the CVITP participation rates of those living in poverty, we noted that “New Brunswick has the best participation rate, with 43.4% of the province’s poor receiving CVITP services. At 17.4%, Ontario has the worst participation rate among the provinces, well below the rate for all the provinces combined (24.3%).”
The purpose of this article is to explore some of the reasons for these wide divergences. To help find some of the reasons, we compare the two best performers, New Brunswick and Prince Edward Island (PEI), with the two weakest performers, Ontario and British Columbia (BC).
First, we dismiss a couple of reasons we think are not relevant. Next, we analyze the Canada Revenue Agency (CRA) CVITP data for 2021 at the provincial level. Here we discover three important differences between these high and low performing provinces. Then we look at the provincial level data in 2022 and 2023. We want to see if there have been changes since 2021 in these three areas which might significantly improve the CVITP participation rates of the poor performers relative to the strong performers.
Finally, we link these differences with the expected results of the CRA’s pilot grant program. We argue that the developments in these areas prove the pilot did not achieve two and arguably three of its four expected results. (No CRA data has been made public which allows for an assessment of the fourth area.)
Read here about the three differences between the high and low performing provinces in 2021, how these differences evolved between 2021 and 2023, and why we believe they demonstrate that the CRA’s pilot grant program has been a disappointment.
Inequalities of Access to Free CVITP Services Across Canada
There are great disparities in vulnerable Canadians’ access to CVITP services across Canada. This shows up clearly in the different rates of participation in CVITP services between the provinces.
In this article, we look at the 2020 provincial poverty data Statistics Canada estimated using its Market Basket Measure or MBM. (At that time, Statistics Canada had yet to establish a separate MBM for the territories.) We compare this data with the CRA’s data on the number of CVITP clients served in each province during the 2021 tax filing season. From this, we calculate the percentage of those living in poverty who were served by the CVITP. (We use the generous assumption that all individuals served by the CVITP in 2021 were living in poverty in 2020.) This gives us what we call CVITP participation rates by province.
These rates vary substantially between the provinces. See here how Prince Edward Island ranks in comparison to the other provinces in providing CVITP services to those living in poverty.
Calling for contributors from Prince Edward Island
Do you work as a CVITP volunteer or does your organization host a CVITP clinic in Prince Edward Island? What is happening with the provincial portion of the income tax and benefit return or with the CVITP that you think others in Prince Edward Island should know about?
We’re looking for contributors who want to share useful Prince Edward Island-related information and ideas with our readers. (Not sure if your contribution is relevant? Check out the three purposes of this page here.) If you’re interested in contributing, please use the Contact page to let us know more about what it is you want to share.