Category Archives: Money Tips

Why Expecting Canadians to NETFILE Using Private Software is Unfair and Divisive

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The federal government seems to be moving towards forcing Canadians to file their tax returns electronically. At the same time they are doing little or nothing to facilitate such a change. I think the government is creating an unfair and divisive situation where some people can afford to get their taxes done properly, on time and with the maximum benefit or minimum owing, and others are spending money they cannot afford just to get their taxes filed.

The Government Must Offer a Government Mechanism to File Electronically

The first logical step to automating Canada’s tax return system would be to provide every taxpayer with access to a government-run website to enter their tax data.

As a first step, it should be possible for a taxpayer to open a folder and within that folder to open each Schedule and Form needed to submit a paper return. They should then be able to simply type the data from their paper return into the appropriate spaces on this electronic mirror image. This should be an encrypted internet-accessible program similar to an online banking program. The taxpayer should not have to download any programs or install any software. It should be able to run on the common platforms available in public libraries and community access locations.

The next step would be for the government to simplify what the taxpayer needs to type into the mirror replicas of the paper forms so that the mathematical calculations are done automatically. The taxpayer should just have to review those fields against their paper return and make sure they match.

Ideally, later, the government should provide a free full-featured program similar to those commercially available to guide taxpayers through paying their taxes.

Why Even Government-Provided Programs Are not an Ideal Answer

Even this is not a great solution. Taxpayers without personal computers would be forced to have their personal financial information on display at a public place such as a library. I can foresee some criminal minds realizing they could place secret video cameras to capture this identity and financial information.

The amount of time available at places like libraries is also very limited. It’s not always possible to get internet access at a library now, much less if hundreds of people were lined up waiting to file their taxes. (Remember most forms required to file taxes are only available after February 28, yet the tax filing deadline is April 30.)

Private Enterprise should not be the ONLY Option

The current system is not working.

Most people have to pay to buy software, install it on their own computer and use it to calculate and file their taxes. Or they have to take their information to a third party’s office and pay them to fill out and file their return. (Or they have to file a paper return, which works perfectly well but which is what the government is trying to force users to stop doing.)

Why should a taxpayer have to pay a private company to pay their taxes?

Why should a person who cannot afford a computer have to pay someone to file their taxes?

Why should someone who cannot use a computer due to age or disability but not lack of money have to pay someone else to file their taxes?

If the government wants to allow third party software programs to continue to be used, that’s fine. There are many tasks in life where people prefer one type of program over another. But there should be an option to use a free accessible government program. The only option right now is to buy a program from a third party. (Or use free software from a third party knowing that morally they should make a donation to keep those companies open.)

Using Third Party Software is Frightening to Many Taxpayers

Why should taxpayers have to take a chance that they may download a virus to their computer when they use a non-government program to pay their taxes?

Why should taxpayers have to worry that some private company may embed (knowingly or unwittingly) a malicious program inside their tax return program that provides personal and private information illegally to another person?

Why should taxpayers have to worry that software is not properly calculating their taxes? I have had readers ask me whether the personal exemption was being applied, whether credits were being properly shared between spouses and other questions that suggest a basic lack of faith in the program.

Free Software is NOT Available to Everyone

Only two programs were available for free in 2013 (for 2012 returns) for taxpayers making an income of over $35000: GenuTax Standard 2012 and StudioTax 2012. Both of these programs require the user to download and install software.

You cannot download software and install it on most publicly accessible free computers. For example, you cannot do this at a public library or at any public accessibility computer I have ever seen. (If you disagree with me, please provide information about where this can be done with a comment.)

That means if

  • The taxpayer does not have a computer
  • The taxpayer does not have a computer with an operating system compatible with the software
  • The taxpayer does not understand how to download and install programs

 

They cannot use these free programs. (NOTE: These programs are actually “pay what you can” programs. Without donations their programmers will have to stop offering them.

Free Software Cannot Provide Customized Service

Free software has very limited resources to provide technical assistance to users. You can’t expect a company that is already offering tax software for free to also employ hundreds of people to deal with the inevitable questions and errors. The government should provide the software and the government should provide the technical assistance because it is the government that is forcing this shift in usage.

Community Tax Volunteers are Already Stretched

There are many kind persons in Canada who take a course and help others file their tax returns. These are wonderful volunteers who deserve to be applauded.

However, there are not nor can there ever be enough volunteers to help everyone file their taxes. As it stands now, most volunteer groups have to limit their help to those with very low incomes and very simple returns.

Conclusion
The government should take responsibility for making tax filing simpler and easier so people can file their own taxes without assistance.

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Do you think the government is pushing the “free enterprise” envelope too far by expecting us to buy software just to file our taxes? Please share your views with a comment.

Does the Label in Your Shorts Say Stanfields?

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Canadians are talking this week about keeping jobs in Canada. First RBC was caught shipping IT jobs offshore, the kind of high-paying intellectual white collar “information” jobs the federal government used to brag we would keep while we off-shored the “dirty” work. Then this week a terrible tragedy in Bangladesh called into question the responsibility Canadian companies feel or don’t feel for the safety of their overseas workers. In both cases, many Canadians started asking why can’t we just keep the work here at home? Our unemployment rates are high. Our own youth need work.

Looking at Labels Seems a Lost Cause

I’m old enough (yes, I’m pre-NAFTA) that I can remember checking labels when shopping, especially when I was growing up and shopping with my Mom. We consciously chose to buy clothes with the little maple leaf and Made in Canada woven on the itchy tag. It often cost a few bucks more but we knew people in Canada (well, if you call Quebec “Canada”) that would benefit from the work.

Fast forward to when I started shopping with my own children. You can certainly find a UN’s worth of countries on the clothing labels but the Canada flag is found only on a very few and far between items. Even brands that used to feel Canadian (Roots, Northern Reflections, Canada Marshlands) seem to outsource and overseas part or most of their production.

Low Cost Labels vs. High Cost Cash Grabs

I doubt we’re likely to return to the days of most kids t-shirts being Made in Canada. At $2-4 new from Walmart or Old Navy people are unlikely to switch to paying $8 and up just for a maple leaf on the label. And, in fact, those aren’t the outsourced overseas’d products that bother me.

I do resent, though, paying $200 for a clothing item that the seamstress was paid $1 or less to produce. When high cost labels use low cost, exploited labour to produce their products, I balk.

Coach Versus Baggins and Baggins

When my husband, who is probably the best man I know, wanted to buy me a new purse for a gift, he chatted with some of the women he works with. He discovered Coach was a brand that was popular that year. When he floated the idea in front of me, though, he had no trouble understanding and supporting my view. Coach, I explained, produce almost all of their bags in another country. They pay very little to the people who work so hard to cut and combine the leathers. Then they turn around and charge their customers a fortune.

I’d far rather buy a hand crafted leather purse from a Canadian entrepreneur. A past favourite was Baggins and Baggins. (Any LOR fans out there?!)  They seem to have slipped into retirement. But others I like including Karen Gunna are still hand crafting items worth more than every cent they charge.

My parents and some of my relatives feel this same way about higher end purchases. So when they bought adorable clothes for my toddlers, they bought ones made in Canada. They cost more but the designs were more exclusive and the employment went to Canadians.

Open to Opportunities but Not Obsessing

So now we keep our eyes open and look for labels that show an opportunity to buy Canadian. Facing a whole rack of boxers, my husband will pull out the Stanfields (you still have to check WHICH Stanfields as some our not MIC) instead of the Jockeys. I’ve found a surprising number of socks and sweats at Walmart (of all places) that are actually Made in Canada.

And for a large variety of reasons, we do a lot of shopping from small entrepreneurs either at their studios or at ‘craft’ sales. Canadians have some amazing merchandise on offer if you can find it.

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Do you try to support Canadian businesses? Or do you buy whatever best fits your budget with nary a glance at the country of origin? Please share your experiences with a comment.