In actuality the CRA and recent federal gov'ts have done a lot to simplify taxes in Canada. It's way simpler these days. Though obviously this payroll stuff is an exception.
10-15 years ago there were piles of special exemptions carved out for all sorts of things (mostly to buy votes.) These days, if you don't have self-employment or foreign investments, etc and are just the typical paycheque-receiving wage slave, filing taxes is trivial and mostly automatic.
The bulk of the complication in the above graph seems to do with the fact that Canada is a highly federal system, with provinces having various relevant powers and oddities carved out as a result of that. That, and the existence federal employment insurance and pension plan systems.
"trivial and mostly automatic" - but not so automatic that it's done for you, as in some other countries. And that's by design - Intuit still wants their cash cow providing that sweet sweet revenue every tax season.
I don't see how Intuit has any pull on Canadian tax law or influence with the CRA. And there are plenty of alternatives. I used ufile.ca for years, way cheaper. And honestly, just picking up the form and doing it yourself is all my parents did for years.
I'm pretty sure we'll see what you're asking for within the next 5-10 years. With them already having the T4s, etc. I don't see why they couldn't have you login to their site, confirm everything, and submit.
According to someone who worked for a popular accounting software company, Canadian tax law is amongst the most complicated in the world. Many companies benefit from this, and it's long been shown that they lobby to keep it this way (in the USA at least). Assuming similar motives and incentives in Canada isn't a particularly big stretch.
But if what you describe comes to pass - even just for simple returns for individuals - I'll be pleasantly surprised.
> In actuality the CRA and recent federal gov'ts have done a lot to simplify taxes in Canada.
Sorry, as much as I want to believe this, I have loads of evidence against it:
* I have PDFs of all my annual personal income tax returns. Looking at one year to the next, each year tends to add a couple of line items (as designed in the CRA form - not talking about my personal line items), and each year has a chance of adding a page or two to the overall return package.
* Line numbers got two extra zeros appended in tax year 2019. e.g. Line 121 became Line 12100.
* Ontario has had a surtax for decades instead of rolling it into the marginal rates.
* TFSA was introduced in 2009. FHSA was introduced in 2023. Need I say more?
* The Working Income Tax Benefit, introduced in 2007, now named the Canada Workers Benefit, acts like a pseudo basic personal amount. It would be better to meld this into the marginal tax rates.
* The CPP introduced an "enhancement" in 2019 as an extra line item instead of rolling it into the existing rate table. This is a disingenuous way to present a new tax, and a way to obfuscate it.
* Canada Training Credit, introduced in 2019, adds a page to the tax return.
* Ontario health premium, introduced in 2004, adds just over half a page, instead of rolling it into the marginal rates.
In light of all this, all I can see in the tax code is an ever-expanding morass of complexity that is an enormous time and brain drain on law-abiding taxpayers.
10-15 years ago there were piles of special exemptions carved out for all sorts of things (mostly to buy votes.) These days, if you don't have self-employment or foreign investments, etc and are just the typical paycheque-receiving wage slave, filing taxes is trivial and mostly automatic.
The bulk of the complication in the above graph seems to do with the fact that Canada is a highly federal system, with provinces having various relevant powers and oddities carved out as a result of that. That, and the existence federal employment insurance and pension plan systems.