May 2026

On this page

• Executive summary
• Background information
• Consultation overview
  • Consultation promotion
  • Online questionnaire
  • Roundtables
• Consultation findings
  • Income tax filing challenges
  • SimpleFile
  • Expanding automatic tax filing tools and services
• Conclusion
  • Recommendations
  • Next steps
• Appendix
  • Questions asked in the consultation questionnaire
  • Roundtable discussion guide
  • Participant information
  • Roundtable evaluations
  • Advisory group

Executive summary

The Canada Revenue Agency (CRA) held a public consultation on automatic tax filing services in the fall of 2025. From September to December 2025, the CRA sought input through an online questionnaire and virtual roundtables with individuals, community and Indigenous organizations, academics, and members of the tax filing industry.

Participants expressed broad conditional support for automatic tax filing services for individuals with a lower income and a simple tax situation. Support was especially high from community organizations and academics. Those who were supportive acknowledged that automatic tax filing could help ensure vulnerable communities receive the benefit and credit payments they are eligible for by reducing filing barriers and simplifying the process. Others had reservations, including concerns about privacy, the accuracy of returns, and the CRA’s ability to deliver high-quality services.

Participants emphasized that support and success would depend on trust building, clear and transparent communications, and respect for personal choice.

Participants also provided comments on tax filing and SimpleFile challenges, including barriers for low-income communities. They often highlighted the complexity of the tax system, lack of trust in government, and difficulty accessing CRA services.

Participants offered suggestions for an automated tax filing program:

• Pilot automatic tax filing on behalf of individuals with a lower income and a simple tax situation
• Provide explicit opt-in, transparency, and clear communication
• Provide modifiable pre-filled returns and give enough time for individuals to ask for changes after they file the return
• Offer in-person support services for individuals and work with community organizations to reach out to and build trust with various communities
• Invest in CRA service improvements (including training and service standard improvements)
• Explore legislative updates to simplify the tax system and enable larger-scale automation

This report includes an overview of the consultation design, findings, and next steps.

Background information

Each year, certain individuals with a lower income miss out on benefit and credit payments they are eligible for because they do not file an annual income tax and benefit return. The CRA has various tools and services designed to help those with a lower income file a return, including:

• Community Volunteer Income Tax Program
• “Let us help you get your benefits!” Indigenous credit and benefit short return form
• SimpleFile services

The CRA’s SimpleFile services are simplified tax filing methods offered by invitation to taxpayers with lower income and simple tax situations. They use existing information on file for the individual and the responses they provide to a short series of questions to automatically complete and file their tax returns. These services, available since 2018, include:

• SimpleFile by Phone
• SimpleFile Digital
• SimpleFile by Paper

Announcements in Budget 2023 and Budget 2024 mandated the CRA to continue removing filing barriers for low-income communities and increasing access to benefits and credits. The CRA committed to:

• increasing the number of eligible individuals for SimpleFile by Phone (previously File My Return) to 2 million by 2025
• piloting an automatic filing service that will help individuals with lower income who currently do not file their taxes
• exploring other avenues, including amending legislation and working with leading experts and the tax filing industry

On October 10, 2025, the Government of Canada announced its plans to begin automatic federal benefits for the 2026 tax year that will reach up to 5.5 million low-income Canadians by the 2028 tax year. These individuals would be able to review, update, and confirm a pre-filled income tax and benefit return, and consent to the CRA automatically filing their return to ensure they receive government benefits they qualify for.

Later, Budget 2025 (tabled November 4, 2025), proposed to amend the Income Tax Act to allow the CRA to file a tax return on behalf of certain eligible individuals with lower incomes in simple tax situations who do not owe tax and do not file themselves. This filing arrangement is also known as deemed filing^{Footnote 1}.

Consultation overview

From September to December 2025, the CRA held a public consultation to get feedback on the future of automatic tax filing in Canada. The consultation was done in two parts: an online questionnaire and roundtable discussions. In addition to these formal consultation activities, the CRA received over 3,000 emails in early October 2025 about automatic tax filing from various individuals in what appeared to be connected to an organized campaign against automatic tax filing.

Note: While the consultation findings provide valuable insights into the views of participants, they should not be interpreted as representative of the entire Canadian population, specific regions, or client groups.

Consultation promotion

Information about the consultation was available to the public on the Automatic tax filing consultation web page. We shared the questionnaire with community organizations, EFILE account holders (tax preparation service providers and discounters), tax industry associations, and other federal government departments. We used the CRA’s electronic mailing lists, communications channels, and other outreach methods. These groups were also asked to promote the consultation to their community networks and members.

Online questionnaire

The CRA sought input from the public during the consultation through an online questionnaire . The questionnaire was developed with input of an advisory group of academics, community organizations, and tax industry experts. The questionnaire was available on Canada.ca from September to October 2025. The CRA received 11,294 completed submissions from individuals, community and Indigenous organizations, academics, tax preparers, members of the tax preparation and software industry, and professional accountants (see Chart 1).

Those who responded to the questionnaire had the opportunity to share their views on:

• income tax filing challenges, including those of people with a lower income
• SimpleFile, including the invitation process
• deemed filing (a proposed process in which the CRA would automatically file a tax return on behalf of eligible individuals, particularly those with low incomes who have not opted out or filed on their own, to ensure they receive the benefits they are entitled to)

Chart 1: Participant types

Responses to: “Do you represent or work for one of these groups?“ Base: All participants (n = 11,294)

Artificial intelligence disclosure statement:

To improve our processes, we analyzed participant responses using the CRA’s internal artificial intelligence (AI) tools, which are contained within the CRA to protect participants’ data. Participant responses were not used to train large language models used in AI tools. CRA employees reviewed the data to remove any personal information found in responses before any AI analysis. CRA employees also reviewed the AI-generated findings for accuracy.

Note: Response percentages are calculated to two decimals but displayed as rounded numbers in this report. This may cause added percentages to appear plus or minus± 1% of the total. In some cases, totals may appear not to add up to 100% due to this rounding.

Roundtables

The CRA hosted three virtual roundtables with community organizations, academics, and tax filing industry professionals across Canada (see Table 1). With the Budget 2025 plans to deliver automatic federal benefits and introduce deemed filing and pre-filled tax returns, the CRA focused its consultation roundtables on how the CRA will implement the proposed delivery of automatic federal benefits, while also providing opportunities for participants to give broader feedback.

Participants were invited to discuss:

• the proposed design for pre-filled tax returns
• the proposed design for deemed filing
• strategies for engaging first-time filers and hard-to-reach populations
• opportunities for collaboration

Participation in the roundtables was by invitation only. The CRA invited interested and impacted organizations to the roundtables by email. For a list of participating organizations and demographics, see Appendix: Roundtable participant information.

Consultation findings

Input from participants was consistent across the online questionnaire, roundtables, and email submissions. They made comments on similar themes, including the benefits of automatic tax filing for vulnerable communities and considerations for designing a trusted automatic tax filing program. They also gave input on challenges with tax filing and using SimpleFile, particularly for individuals with a lower income.

Income tax filing challenges

Participants were clear that there are persistent challenges to filing income tax and benefit returns, including the complexity of the tax system, access to service, and lack of trust in the CRA or government. These challenges were raised by all participant types.

Complexity of the tax system

Participants described the tax system as overly complicated, even for simple returns, with unclear instructions and frequent changes. They framed this as an underlying issue, which contributes to other significant barriers, such as the time it takes to file a return, fear of making a mistake, and language barriers. Some called for the CRA to focus its efforts on simplifying the tax system by reducing calculations and harmonizing federal and provincial processes instead of introducing changes or new tools and services. However, they acknowledged that legislative changes are outside the CRA’s jurisdiction.

Participants said tax forms and terminology are hard to understand and stressed the need for shorter forms, fewer steps, clear rules and definitions, plain language, and user-friendly resources like checklists. These solutions can be especially necessary for people with non-standard or complex situations, such as disabilities, self-employment, and retirement.

The complexity of the tax system often led to participants’ uncertainty about deductions, credits, and benefits. Many noted they have doubts that tax software captured everything they are eligible for. They said they fear making a mistake when filing their return, so they turn to tax preparers or accountants, even for simple returns. They called for:

• simple eligibility tools to help them claim credits and benefits for which they are eligible
• broader outreach to increase tax literacy, such as seminars and tutorials

Also, participants mentioned the process of gathering necessary documents (including tax slips, financial and medical documents, and receipts) and verifying information. Even when participants understood the tax rules, they said these steps are a burden because they require time.

Access to service

Participants highlighted access to CRA services as a significant challenge to tax filing. Long telephone wait times and dropped calls have made it difficult to reach the CRA and when they did, they often received inconsistent and unclear answers. When filers can’t resolve questions promptly, it compounds the stress of completing a return accurately and on time.

Some participants said they turn to an accountant when they can’t get answers from the CRA. They called for:

• easy access to helpful CRA agents that can provide quick answers to basic questions
• re-opened CRA service counters

Participants criticized the need to use private, for-profit third-party filing software or services to file returns. They said software options can sometimes be confusing and may lack explanations. Participants also noted that free software options are not available to everyone. Some software offerings have fees for making certain claims on a return, which can discourage some from claiming donations and medical expenses. While the CRA’s Find certified tax software - Tax software for filing personal taxes web page includes some free options, the CRA cannot require software developers to certify and offer free products to the public. Participants also raised concerns that non-residents face additional barriers, as approved tax filing software is more difficult for them to access.

Participants called for:

• a free, government-provided online filing option to eliminate the cost of tax filing software
• all certified T1 software vendors to offer free filing options for those eligible for tax clinic services

Digital barriers and preference for paper forms make access to service especially difficult for seniors and rural residents as services become digital by default and in-person service options become less available. They called for:

• continued paper forms and guides, as well as in-person services like CRA service counters

Tax professional participants stressed that getting authorized as a representative for individuals who do not have access to a CRA account, nor to their previously filed tax information, has been especially challenging after the CRA removed the authorization service within T1-EFILE in July 2025. The CRA made this change to strengthen individuals’ consent to help safeguard tax filer information. However, participants described this change as a significant barrier to helping individuals access their tax information, particularly for individuals who have moved, are incapacitated, or are computer illiterate. They urged the CRA to:

• improve the authorization process for representatives to reflect the realities faced by vulnerable communities
  

  • “Really need CRA to make changes to representatives getting access for clients. Many don't use computers…CRA has placed a burden on taxpayers and tax preparers.” —Online questionnaire participant

Lack of trust

Participants expressed a lack of trust in the CRA or government when filing returns, especially with the use of AI and their personal information and the CRA’s accountability for data breaches. They also had concerns about sharing their personal and financial information with tax filing software providers for fear of data breaches and identity theft. Participants also spoke of a general fear of being taken advantage of and being susceptible to scams and phishing. They called for:

• service improvements (processing and customer service)
• CRA accountability for data breaches and mistakes
• transparency in tax filing (what is being filed, how, and why)

Low-income tax filing challenges

Participants with experience supporting lower income individuals emphasized that this population faces additional barriers that compound the difficulty of completing returns by making it harder to complete forms, meet deadlines, or access support services. Often, those barriers include:

• costs and affordability
• a lack of access to their CRA account
• limited access to the Internet and a phone or computer
• limited availability of free tax clinics services
• a lack of documents (tax slips and receipts)
• a lack of identity documents, social insurance number, or bank account
• health conditions (disabilities and mental health)
• housing instability
• low literacy and digital skills
• language barriers
• a lack of awareness of benefits or motivation to file
• a fear of owing money
  

  • “As much as you say the forms are simple, for a lot of people the forms are not. It would be far better to give a tax credit that low-income persons can hire a local accountant to complete their taxes for them.” —Online questionnaire participant

CRA account

One of the major challenges for vulnerable individuals is a lack of access to a CRA account. Participants explained that often this is because they have been locked out of their accounts for forgetting their passwords, security questions, or log-in information. Once they’re locked out, they often have difficulty regaining access because their information is available only in their account.

Individuals may also lack digital skills needed to set up and access their account, or they were not able to set up an account because they are behind on filing and don’t have a notice of assessment. Others may not have required identity documents, an email address, Internet access, or a device. They said the CRA should:

• make it easier to unlock accounts by offering multiple solutions (for example, by allowing tax clinics to verify a client’s identity)
• make it possible for tax filers to access their account information at Service Canada locations.

Tax clinics

Another difficulty for those with low income is the availability of free tax clinic services. Participants flagged that some communities have a shortage of clinics or clinics operating all year. Some clinics have less availability early in the tax season when clients are seeking their refund. Clients may also struggle with disabilities or group situations at busy clinics and prefer to see the same volunteer every year. The cost of transportation to a clinic is another barrier for many who rely on taxis, especially in rural areas. Tax intermediary participants offered several solutions, including:

• increasing in-person and virtual clinics, including in rural and underserved areas, with extended hours and year-round services
• increasing the income threshold for eligible tax clinic clients
• increasing clinics’ scope of duties, including more complex case management and after-tax filing tasks (for example, status updates, ReFILE support, reviewing CRA letters)
• allowing volunteers to issue express notices of assessment
• increasing clinics’ record retention period
• increasing funding and informing tax clinics of funding before the start of tax season so clinics can offer services accordingly
• providing a dedicated Community Volunteer Income Tax Program (CVITP) phone line

Awareness and motivation

Tax intermediary participants explained that individuals with a lower income, including youth and newcomers, are frequently unaware that they need to file a return to receive benefits. They may also be unaware of discounted or free services by tax preparers. For example, 41% of participants of the online questionnaire who said their annual household income is less than $20,000 said they were not aware of any of the CRA’s tax filing programs and services for lower income individuals. To build awareness and encourage filing, participants suggested:

• more CVITP promotion
• assigning or directing tax filers to tax clinics based on region
• doing benefits-first outreach through various means (for example, social media, printed posters, and community events) and in multiple languages
• offering a credit or subsidy for filing

Participants highlighted that those who are in crisis situations, such as poverty and housing insecurity, may delay filing or not file because they are focused on their immediate needs, including food, housing, and employment. Without a consistent mailing address or Internet access, these individuals may miss out on information about tax filing services available to them.

Participants suggested:

• distributing outreach materials to medical facilities, community food providers, and social services
• connecting homeless shelters, libraries, food banks, long-term care homes, Indigenous communities, and newcomer agencies with tax preparers

Tax intermediary participants also explained that filers with low income may lack motivation because they have little trust in the CRA from past experiences. Vulnerable communities, including newcomers, may also fear the CRA and government or worry about filing incorrectly or owing money. To better reflect the reality for vulnerable communities, they called for:

• the CRA to engage trusted intermediaries, such as social workers and health professionals, in interactions with individuals to help with communication and required steps (with the individual’s consent)
• the CRA be flexible with how consent is provided (for example, verbal consent during a phone call)
• friendly, non-threatening letters and outreach, including about late filing penalties
• flexible deadlines and interest-free payment plans
• a dedicated phone line for vulnerable clients

SimpleFile

SimpleFile aims to simplify and remove barriers to tax filing for individuals with a lower income, yet only 21% of the 610 participants who said they’ve been invited used the service. The majority of those who used the service said they did not experience any challenges using SimpleFile (63%) and said they would use it again (70%). Participants who chose not to use the service said it was because they did not trust it, or they preferred filing on their own or using a trusted tax professional.

Participants’ challenges with SimpleFile were consistent with overall tax filing challenges described in the Income tax filing challenges section of the report. Those challenges include a fear of making a mistake, a lack of trust in the CRA or in government, and a lack of Internet access. Participants also described issues with the SimpleFile invitation letter and the need for more filing support.

Participants explained that one of the main issues with SimpleFile is that people are often unaware that they’ve been invited to use it. Invitations can go unnoticed because they may not read their online mail, their accounts are locked, or they’ve forgotten they have an account. Also, frequent address changes and unstable housing make it difficult to receive invitations. To address this, they reiterated the need for:

• more in-person outreach services at Service Canada offices, shelters, and community centres

Also, participants said the invitation letter can be difficult to understand. Some described the letter as too long and complicated. Participants said the letters should be less formal, with simple language and explanations by breaking instructions down into steps. For example, one participant suggested breaking down the process even further by sending a preparation letter before the official invitation letter. The preparation letter would include an overview of the process and a checklist of information to gather. This would prepare the individual for filing by the time they receive their invitation.

• “CVITP clinics are very busy. People don't understand simplefile phone filing letter (needs to be clearer & friendlier letter). Too many are just overwhelmed.” —Online questionnaire participant

Participants also explained that improving CRA support services could also make it easier for individuals to use SimpleFile. They called for:

• better support service through a dedicated phone line with short wait times and knowledgeable agents

Many said they prefer to file their returns at a tax clinic or through a trusted tax professional for human interaction over automated systems. They stressed that human interaction is important for SimpleFile clients, especially for first-time filers and those most vulnerable.

Expanding automatic tax filing tools and services

Participants had mixed views on expanding automatic tax filing tools and services in Canada. Those supportive of automatic tax filing for individuals with a lower income and simple tax situation were mostly academics, accountants, and community organizations. Tax preparers and SimpleFile users showed mixed support (see Chart 2 and 3). Those who were supportive often expressed that automatic tax filing would be a more efficient tax filing option and would reduce the burden for many.

Those who were least supportive were more often Indigenous organizations, members of the tax preparation and software industry, and individuals who chose not to use SimpleFile (see Chart 2 and 3).

Individuals who have never been invited to use SimpleFile, and likely would not qualify for automatic tax filing services, were asked if the CRA should explore ways to expand automatic tax filing tools and services. The majority said no (63%). These groups frequently expressed concerns about conflicts of interest, loss of personal autonomy, accuracy and completeness of returns, and the CRA’s quality of service.

Chart 2: Support for automatic tax filing across participant types

Responses to: “If there was an option for the CRA to automatically file a tax return on behalf of certain individuals with a lower income and a simple tax situation using the information it has available, would you support this approach?” Base: Professional accountants, tax preparation and software industry, tax preparers, academia, Indigenous organizations, and community organizations (n = 2,861)

Chart 3: SimpleFile invitee support for automatic tax filing

Responses to: “Would you welcome the CRA filing a tax return on your behalf, using the information it has available?” Base: SimpleFile invitees (n = 610)

Participants’ support for automatic tax filing also fluctuated while the questionnaire was open for input. The results showed that they were significantly more supportive before the CRA started receiving emails opposing automatic tax filing on October 3, 2025. From September 9 to October 6, most participants were supportive of automatic tax filing until overall support started to decline. This was largely driven by submissions from individuals as part of what appeared to be a campaign against automatic tax filing (see Chart 4).

Chart 4: Support for automatic tax filing throughout the consultation period

Responses to: “Understanding the considerations above, should the CRA explore ways to expand automatic tax filing tools and services?” Base: All participants (n = 11,294)

Reducing the tax filing burden

Participants expressed that automatic tax filing services could address many tax filing barriers and help ensure vulnerable communities receive the benefit and credit payments they are eligible for. They noted that the CRA already has most information necessary to file simple returns (such as tax slips and Canada Pension Plan information). They said the CRA could use this information to pre-fill or automatically file them. This solution could also reduce individuals’ reliance on tax preparer and software services.

• “The benefits of automatic tax filing for low-income populations outweigh the challenges and is needed.” —Online questionnaire participant

Other participants emphasized that it is more important to maintain personal autonomy in tax filing, which automatic tax filing services could prevent or discourage. They acknowledged that Canada’s tax system is based on self-assessment and viewed tax filing as a personal responsibility where individuals should be able to file their returns themselves. They said that the system should continue to respect personal autonomy and the individual’s choice of tax filing method. Participants also wanted to see tax filing education added within automatic tax filing services to increase tax literacy and empower individuals to file themselves.

Participants raised concerns that the proposed automatic tax filing services would not reach the most vulnerable, especially non-filers and first-time filers. They said there would be an access barrier because the CRA would provide the services through a CRA account. And for filers to use the services, the CRA would need to have valid information on file for them. Participants highlighted that an automated tax filing service should:

• complete previous years of unfiled taxes, not just the current year, so the most vulnerable individuals can be up to date on their tax filing
• include first-time filers, non-filers, those with large gaps in their filing history, and those without CRA accounts in the automated filing process to reach a bigger population of those in need

Other participants suggested that it would be more helpful to expand tax clinic funding to community organizations and offer in-person filing support to reach vulnerable individuals.

Accuracy and completeness of returns

A main concern for participants was that returns filed automatically would not be accurate or complete because the CRA does not have access to all of the filer’s information. For example, the CRA doesn’t have rent or property tax information (required to assess provincial benefits) or know the filer’s charitable donation amounts. Information they have on file can also be outdated, such as marital status and dependants. Participants also stressed that tax slips are often missing, late, or incorrect when using Auto-fill my return. They said the CRA should wait for all tax slips to be available before filing to avoid overpayments, debts, and adjustment requests.

They also expressed that an automated tax filing system may not be able to capture all eligible deductions or credits or maximize returns for each individual. They expressed that the tax system is far too complex for a one-size-fits-all approach because tax filing requires individuals to make decisions based on their personal circumstances. For example, they may choose to transfer credits to a family member or split their pension. Because the CRA does not administer income taxes on behalf of the province of Quebec, Quebec filers may also not understand that the CRA automated return would not include their Quebec return and that they would need to file their Quebec return separately. Many participants, both supportive and opposed, called for broader simplification of the tax code to make automation more feasible.

• “Individuals and families may still be missing out on certain tax credits and social benefits, as well as the possibility of optimizing their tax return.” —Online questionnaire participant

Participants suggested automatic tax filing be limited to simple returns with single T4 employment income including income from government sources (for example, social assistance and CPP). They said more complex tax situations involving deductions (medical, childcare, and donations) and other income sources should be excluded. They emphasized, however, that the CRA should continue to support individuals with low income from other sources (such as self-employed income), because they have limited community support options.

To ensure accuracy and completeness, many participants supported a pre-filled return service with the ability to review and amend the return before submission. They said the pre-filled return should allow the filer to make corrections and enter optional information before submission. The CRA should verify key information (identity, marital status, dependants, banking information, and residency) before filing on their behalf. Participants suggested working with provincial, territorial, and municipal agencies and community organizations to verify information if necessary.

They also stressed that amendments to a return, such as for missed credits or late slips, must be penalty-free and timely. Filers should also have a fair window of opportunity to amend their returns (more than 90 days).

Some participants doubted that the CRA could effectively file individuals’ returns given its ongoing service issues and said it should focus on improving its overall service standards instead of taking on automatic tax filing.

Accountability and transparency

Participants who were not supportive of automatic tax filing services expressed that there is an inherent conflict of interest that could result in the CRA prioritizing revenue collection over maximizing benefits for taxpayers and benefit recipients. They suggested third-party involvement to ensure returns are submitted fairly and impartially, such as an oversight body.

Participants also emphasized the need for explicit consent from the tax filer each year to account for life changes. Many did not agree with the proposed deemed filing approach, arguing that not opting out does not mean consent. They said that individuals should have to opt in instead of opting out, because they need to understand the implications of automatic tax filing. For example, an individual’s circumstances may have changed, but they may assume that their return is correct if the CRA files their return and if they do not understand that they need to update their information or choose a different filing method. This misunderstanding could lead to penalties for the individual if the CRA later finds an issue with the return. Others stressed that the opt-out process must be easy and must not create a burden to individuals.

• “The CRA must contact individuals to get taxpayer acknowledgement before producing a notice of assessment. Taxpayers should be contacted annually and provide consent before the NOA is issued.” — Online questionnaire participant

They called for clear, proactive communication from the CRA about what automatic tax filing means, its benefits and limitations, and how to opt out or amend returns. Participants said the CRA should also provide a preview or summary of the return before it is filed for review and changes, especially when returns result in money owed. It should be noted that the CRA does not plan to deem file returns where taxes are owed.

Participants said the CRA should communicate clearly that individuals are responsible for verifying their information instead of blindly submitting what the CRA has prepared for them. At the same time, the CRA should be transparent about its actions and decisions to build trust in the CRA’s ability to correctly and impartially file returns and to be accountable for mistakes.

Participants also had concerns about the privacy and security of individuals’ personal information. They were concerned that an automated system could increase the risks of fraud and identity theft and called for robust privacy safeguards and transparency on data use. Community organizations in particular emphasized that clear messaging on data use would be especially important to reassure non-filers that their personal information will remain confidential.

Sector support

Industry and community members said they are willing to support automatic tax filing in various ways.

Academics

Participants from academia, who were mostly supportive (77% of 85 questionnaire respondents), offered support by researching the impact of automatic tax filing and promoting research on its costs and benefits in other countries. Some academic participants also said they would continue to offer tax filing support through tax clinics.

Community organizations

Community organizations provide frontline support to vulnerable populations and were mostly supportive (74% of 589 questionnaire respondents). They said they would offer education and outreach services by promoting automatic tax filing and its benefits as well as gather feedback on how it is working for people. They also offered suggestions to help individuals use automatic tax filing services, such as:

• helping clients review returns prepared by the CRA before filing and make amendments
• helping clients submit requests for adjustments
• helping with identity and address verification
• getting missing client information
• getting consent from individuals for deemed filing
• offering their mailing address for the client’s CRA correspondence
• setting up in-person stations to verify individuals’ status with the CRA

Many expressed concerns, however, about funding and capacity, explaining that demand at tax clinics is already overwhelming current resource levels. Increased responsibilities would require more funding. During the roundtables, community organizations emphasized that the CRA should re-open service counters and also equip community organizations and tax clinics with information for clients on automatic tax filing services and how the services interact with tax clinics. The information could include pamphlets or other shareable printed documents.

Professional accountants

Professional accountants, who were moderately supportive (62% of 528 questionnaire respondents), offered their technical expertise by reviewing CRA-prepared returns for accuracy and providing policy and design input. They could also support by screening and referring clients suited for automatic tax filing, hosting seminars, or offering low or no-cost tax filing services to clients with low income. Many suggested that the CRA provide subsidies to tax professionals to provide these services.

To make it easier for them to support filers, they called for a dedicated phone line to speak to knowledgeable CRA agents and an authorization process allowing them to easily represent clients without CRA account access.

Tax preparers

Tax preparers, who were slightly supportive (51% of 1,527 questionnaire respondents), offered similar types of support through their tax clinics or private practice. They said they would promote automatic tax filing, offer low or no cost tax filing services to eligible clients, review CRA pre-filled returns, and guide clients through the automatic tax filing process.

Indigenous organizations

Indigenous organizations, who showed limited support (37% of 38 questionnaire respondents), offered tax filing support and workshops for their communities, including at community halls and band offices. They stressed that promotion for automatic tax filing, including multilingual advertisements and forms, is most needed in communities and most effective through word of mouth. They also highlighted the need for SimpleFile paper forms for reserves, which would allow individuals to file on their own and reduce pressure on e-filers.

Tax preparation and software industry members

Participants in the tax preparation and software industry, who showed limited support (32% of 94 questionnaire respondents), offered technology solutions. For example, they said they could partner with the CRA to develop tools and services to streamline tax filing and build automatic tax filing services into their software.

Roundtable participants in particular said the CRA should be clear and transparent about its objectives for automatic tax filing so they can adapt to the evolving market. They noted that it is important to maintain a trusted third-party free filing option for those who prefer not to use the CRA’s automatic tax filing services. However, they need reliable information on the CRA’s plans for automatic tax filing (including how many individuals will be eligible) before they can invest in free software solutions. Like the CRA, they said they wanted to offer a pre-filled return service and automated service for eligible clients if they could. Currently, they cannot offer those services, because the CRA requires them to ask certain questions.

The software industry representatives said they could support filers who are eligible for automatic tax filing but who may benefit more from third-party services because of the CRA’s limitations. They stressed that the CRA should be clear to users about its automated system’s limitations for tax filers, such as options for deductions.

They also said information on tax filing statistics, such as filing rates by region, would enable them to understand and reach non-filers. They recognized that reaching first-time filers and non-filers is difficult and said it is something the CRA should collaborate with the tax industry on.

Conclusion

The consultation revealed that there is broad conditional support among participants for automatic tax filing for individuals with a lower income and a simple tax situation. Community organizations and academics were especially supportive.

Across all feedback channels, participants often raised concerns about:

• the accuracy of returns
• individuals’ privacy
• the CRA’s ability to deliver high-quality service

They stressed that automatic tax filing must be:

• voluntary, with clear opt-in processes
• supported by strong communication and privacy safeguards

Many also called for improvements to existing services, such as SimpleFile and tax clinic availability, before introducing new tools.

Participants acknowledged that automatic tax filing services could reduce barriers, improve access to benefits, and simplify the filing process. However, they emphasized that success depends on building trust, being clear and transparent about the process, and respecting personal choice.

Participants highlighted opportunities to collaborate with the CRA to strengthen outreach, education, and technical solutions. These partnerships, combined with service improvements and clear communication, will be critical to implementing automatic tax filing in a way that meets Canadians’ needs and upholds the CRA’s commitment to deliver high-quality services.

The CRA thanks all participants who contributed to the consultation.

Recommendations

We summarized, using artificial intelligence, participants’ feedback into six recommendations:

• Pilot automatic tax filing on behalf of individuals with a lower income and a simple tax situation
• Provide explicit opt-in, transparency, and clear communication
• Provide modifiable pre-filled returns and give enough time for individuals to ask for changes after they file the return
• Offer in-person support services for individuals and work with community organizations to reach out and build trust with various communities
• Invest in CRA service improvements (including training and service standards)
• Explore legislative updates to simplify the tax system and enable larger-scale automation

Next steps

The CRA will proceed with the following next steps based on the above recommendations.

Program design

Deemed filing

• In 2026, pending royal assent, the CRA will conduct a small, deemed filing pilot for eligible individuals with a lower income and simple tax situation. This will allow the CRA to implement deemed filing using limited criteria, to identify issues, and address challenges before a broader rollout.
• The CRA will send a notice to eligible individuals in their CRA account about deemed filing 90 days after the filing deadline. They will have 90 days from the date of the notice to take action (per Budget 2025 commitments). They must review their information. If any changes are necessary, they must opt out of deemed filing before the CRA files the return on their behalf and file their return on their own to access the credits and benefits they may be entitled to.

Pre-filled returns

• In March 2027, the CRA will offer a pre-filled return service for eligible individuals with low incomes within the CRA account. The pre-filled returns will reflect data the CRA has on file in real-time. Eligible individuals will have until the tax filing deadline on April 30, 2027, (a minimum of six weeks) to review their pre-filled return, make necessary changes, and respond to the CRA. By responding to the CRA, the individual will either deny or consent to the CRA filing the return based on the data provided.

Communications and outreach

• We will strive to provide complete, accurate, and timely information in plain language about automatic tax filing services, including eligibility requirements, and instructions for opting out as it becomes available. We will communicate this information using a variety of mediums and evaluate our communications on an ongoing basis. The most current information is on the following web pages:
  • Automatic tax filing
  • SimpleFile
• We will continue to reach out to Indigenous groups, provincial and territorial governments, community organizations, and tax clinics to improve collaboration, data-sharing, and promotion of automatic tax filing measures.

We will also share this report internally, and with Finance Canada, which is responsible for amendments to the Income Tax Act and Regulations, to recommend ways of improving services.

Appendix

Questions asked in the consultation questionnaire

The consultation questionnaire was available on Canada.ca from September 9 to October 9, 2025.

Roundtable discussion guide

Community organizations roundtable

Pre-filled tax return

1. What challenges do you foresee with the pre-filled tax return service?
2. What key messages should we consider when introducing and communicating about pre-filled tax returns?

Deemed filing

3. What challenges do you foresee with the proposed design and delivery model for deemed filing?
4. What key messages should we consider when introducing and communicating deemed filing?

Strategies for engaging first-time filers and long-term gap filers

5. How can community organizations play a role in supporting CRA’s outreach and communication efforts on automatic tax filing?
6. As we continue developing and enhancing these automatic tax filing services, how would community organizations like to be engaged going forward?

Tax industry roundtable

Pre-filled tax return

1. Where do you see possible opportunities for collaboration between the tax industry and the CRA for the pre-filled tax return service?

Deemed filing

2. Where do you see possible opportunities for collaboration between the tax industry and the CRA for deemed filing?

Strategies for engaging first-time filers and long-term gap filers

3. Where do you see possible opportunities for collaboration between the tax industry and the CRA on reaching first-time filers and long-term gap filers?

Participant information

Online questionnaire participants

Table 2: Participants’ age category

Responses to: “Which age category do you belong in?” Base: Individuals (n = 8,433)

Table 3: Participants’ household income

Responses to: “Which of the following best describes your total household income last years, before taxes, from all sources for all household members?” Base: Individuals (n = 8,433)

Table 4: Participants’ preferred official language

Responses to: “Which official language (English or French) do you identify with and feel most comfortable speaking?” Base: Individuals (n = 8,433)

Table 5: Participants’ organization’s preferred official language

Responses to: “In accordance with the Official Languages Act, what is your organization’s preferred official language of communication?” Base: Professional accountants, tax preparation and software industry members, tax preparers, academics, Indigenous organizations, and community organizations (n = 2,861)

Table 6: Participant demographic information

Responses to: “Which province or territory are you located in?” Base: All participants (n = 11,294

Roundtable participants

The following is a list of organizations that participated in the roundtables.

Roundtable evaluations

We asked participants to complete an evaluation form at the end of each roundtable to measure the success and satisfaction of the roundtables. Of the 20 roundtable participants, eight completed the evaluation. Most participants agreed that they had meaningful opportunities to provide feedback to the CRA and were confident that their input would help improve the CRA’s automatic tax filing services. Their level of trust in the CRA either increased or remained neutral after attending the roundtables. They expressed interest in continued collaboration with the CRA on automatic tax filing services.

Advisory group

The CRA’s automatic tax filing advisory group was created in the fall of 2024. Its mandate was to provide advice and a balanced perspective to help the CRA develop its plan for automatic tax filing.

The group’s members included academics, community organizations, and tax industry experts, including representatives from:

• Carleton University
• C.D. Howe Institute
• EFile Association of Canada
• Fédération des centres d’action bénévole du Québec
• Prosper Canada
• Wealthsimple

Footnotes

Footnote 1

Notice of Ways and Means Motion to Amend the Income Tax Act and the Income Tax Regulations | Budget 2025

Return to footnote 1 referrer