How Does the World Of Technology Affect Your Canada Taxes

We all know that we live in a world of technology, and it certainly has it’s perks, but it can also have it down falls too. As you may be aware the CRA has really been pushing towards automation in the last little while.   If it can be done by a computer then they are all for it.   They are encouraging tax payers to Efile and are taking steps to further automate the tax system for businesses.

So what is the reason for this?   Is it so Canadian taxpayers will have these resources as convenience?   Or is it so they can reduce actual manpower in the Tax agency and save some money on the payroll?


You will need to form your own opinion when it comes to these questions, but the real question is how safe is this going to be. Now we are not referring so much as to identity theft here, which no doubt there could be a small window of that happening. After all, there have been some pretty big Corporations and agencies that have had their sites hacked into. Over all though, security measures for the web are pretty good.


The real question of safety is error. Is there a chance that some massive tax computer could enter your information wrong which in turn could have a big effect on your taxes? Can computers make mistakes? Before answering that you may want to take a look at this…..


“Canada Revenue Agency cuts off elderly woman’s tax benefit after deciding she’s dead


A Toronto resident wants to know how the Canada Revenue Agency could decide her 85-year-old mother was dead — and cut off her Ontario Trillium benefit — without any proof.


Lavinia Nassif says she received a letter in the mail Tuesday addressed to the estate of the late Maria Francisco, who lives and breathes in the same North York house she does.


“These are people who work for the government. How do you put someone in the computer as dead without any death certificate?” asks a baffled Nassif, a former provincial employee who managed the gasoline tax branch at Queen’s Park for 15 years.


To make matters worse, Nassif learned the closest CRA office has closed its doors to the public and now only responds to enquiries by mail.”…continue reading


Now you have to admit this is a pretty serious mistake. The article goes on to talk about how this can easily happen. What is just as interesting however, is the fact that when the parties involved when on to try and rectify this they basically hit a stone wall. Their local service department for their area had been closed and their own recourse was to rectify the matter by mail. Even a telephone call to the CRA didn’t help.


If mistakes are going to be made like this on a regular basis or even once in awhile, with so many more people becoming automated with their tax obligations can you perceive this as being an absolute nightmare for the taxpayer involved? This will be true if the CRA does have plans to cut back on their staff, although there is nothing to substantiate this as yet. It will be a wait and see scenario.


Fortunately for those who use professionals like a Toronto accountant at least they will have a resource to help them sort out any potential computer glitches that may affect their tax situation.


Share Your Thoughts!


Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant


Contact Sam today

The information provided here and throughout the site of TorontoAccountant.CA is intended for general tax information only, and should not be misconstrued as a legal source of information regarding your tax situation, or be used for any other purposes other than for general information.
Sam Seidman, Chartered Accountant - Copyright ©2013. All Rights Reserved.