The Canada Revenue Agency has acknowledged it will continue processing millions of paper tax returns, giving up on long-standing efforts to make electronic filing mandatory.
Blacklock's Reporter says a recent internal memo confirms that the CRA will support both digital and paper submissions to ensure accessibility for all Canadians.
“While continuing to promote digital services, other filing methods such as paper filing will continue to be supported so that no one is left behind,” said a briefing prepared for the minister.
The agency noted it remains “focused on innovation in tax filing,” but will not force Canadians to abandon traditional paper returns.
Of the 35.8 million tax returns submitted by individuals and businesses last year, nearly 2.7 million arrived by mail.
The CRA confirmed that individuals who previously filed on paper continue to receive mailed tax packages to support their annual filing needs.
Although Parliament passed Bill C-47 in 2023, which included a measure prohibiting mailed cheques for tax payments over $10,000, the CRA still accepts those payments by mail. Officials said flexibility remains for those unable or unwilling to go digital.
“The intention is not to force people to do things electronically if it is not possible or if they have been historically filing on paper,” testified Lindsay Gwyer, the CRA’s director general of tax legislation.
She added that anyone who prefers paper communications can still request them.
This isn’t the first time federal efforts to digitize services have faced pushback. In 2012, a campaign to mandate direct deposit for all government payments — including tax refunds, Employment Insurance, and Old Age Security — was shelved after focus groups revealed strong resistance.
A public opinion study at the time showed 37% of Canadians were reluctant to provide their banking information to federal agencies. A separate 2014 poll found 46% saw no clear benefit to direct deposit.
Among the reasons cited: 20% said it wasn’t worth the switch, 17% preferred cheques, 16% distrusted the government with financial data, and 12% believed they had better control with paper payments. Another 7% cited privacy issues, while 4% simply said, “I don’t trust it.”