The department of Finance stated despite a clause in Bill C-47 the Budget Implementation Act, there will be no enforcement of restrictions on taxpayers' use of cheques. . Canada Revenue Agency .According to Blacklock’s Reporter, the budget bill would force electronic payments for taxes over $10,000..“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,” said Lindsay Gwyer, director general of tax legislation at the department of Finance. .During Gwyer’s testimony at the Senate National Finance committee, she explained the bill's purpose was to encourage people to use “digital filing” rather than penalizing those who prefer using checks..“The changes would allow employers or institutions that are issuing T4s or T5s to issue them electronically,” said Gwyer. .“It would still be possible for someone who wants to receive them on paper to request to receive them on paper, but the rules confirm that it’s permissible for these institutions to issue them electronically if that’s what the recipients prefer.”.“Why did the government not opt to make the threshold $5,000 or $1,000 or $1,500? How did you pick the number?” asked Sen. Larry Smith (QC)..“I think $10,000 was identified as being a number that was high enough that it would be reasonable to expect that most people would likely be making that payment electronically anyway,” replied Gwyer. .“That number is a judgment call.”.According to Pierre Leblanc, director general of personal income tax at the department of Finance, millions of Canadians still submit annual tax returns using paper forms. .Recent data reveals of the 30.5 million tax returns filed in 2021, approximately 2.7 million or 9% were submitted on paper..“People can continue to use paper to file their return if they choose,” said Leblanc. .“They can continue to receive communications with the Canada Revenue Agency (CRA) by mail if they choose and they can continue to receive cheques instead of direct deposits if they choose.”.Bill C-47 is the first attempt to curb the use of cheques since the department of Public Works in 2012 tried to force all recipients of tax refunds and federal benefit payments to surrender their bank account information for direct deposit. Managers at the time defended the proposal as a cost savings initiative. Processing a single electronic transfer costs 13 cents compared to 82 cents plus postage to mail a paper cheque..The CRA in 2021 in-house research found cheque users resisted change. .“Those who submit their taxes by mail most often say they use paper rather than filing electronically because it is simply how they prefer to do it, e.g. they do it out of habit, because ‘it’s what they are comfortable with,’ they like it, etcetera,” said a Digital Acceleration Research Final Report. .“Just 13% cite security issues.”.“The most important factor influencing why respondents file by paper instead of online is disinterest,” wrote researchers. .“Apathy is a barrier, 50% of likely switchers say they are simply not interested in switching. Therefore the agency will have to demonstrate the value of switching.”
The department of Finance stated despite a clause in Bill C-47 the Budget Implementation Act, there will be no enforcement of restrictions on taxpayers' use of cheques. . Canada Revenue Agency .According to Blacklock’s Reporter, the budget bill would force electronic payments for taxes over $10,000..“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,” said Lindsay Gwyer, director general of tax legislation at the department of Finance. .During Gwyer’s testimony at the Senate National Finance committee, she explained the bill's purpose was to encourage people to use “digital filing” rather than penalizing those who prefer using checks..“The changes would allow employers or institutions that are issuing T4s or T5s to issue them electronically,” said Gwyer. .“It would still be possible for someone who wants to receive them on paper to request to receive them on paper, but the rules confirm that it’s permissible for these institutions to issue them electronically if that’s what the recipients prefer.”.“Why did the government not opt to make the threshold $5,000 or $1,000 or $1,500? How did you pick the number?” asked Sen. Larry Smith (QC)..“I think $10,000 was identified as being a number that was high enough that it would be reasonable to expect that most people would likely be making that payment electronically anyway,” replied Gwyer. .“That number is a judgment call.”.According to Pierre Leblanc, director general of personal income tax at the department of Finance, millions of Canadians still submit annual tax returns using paper forms. .Recent data reveals of the 30.5 million tax returns filed in 2021, approximately 2.7 million or 9% were submitted on paper..“People can continue to use paper to file their return if they choose,” said Leblanc. .“They can continue to receive communications with the Canada Revenue Agency (CRA) by mail if they choose and they can continue to receive cheques instead of direct deposits if they choose.”.Bill C-47 is the first attempt to curb the use of cheques since the department of Public Works in 2012 tried to force all recipients of tax refunds and federal benefit payments to surrender their bank account information for direct deposit. Managers at the time defended the proposal as a cost savings initiative. Processing a single electronic transfer costs 13 cents compared to 82 cents plus postage to mail a paper cheque..The CRA in 2021 in-house research found cheque users resisted change. .“Those who submit their taxes by mail most often say they use paper rather than filing electronically because it is simply how they prefer to do it, e.g. they do it out of habit, because ‘it’s what they are comfortable with,’ they like it, etcetera,” said a Digital Acceleration Research Final Report. .“Just 13% cite security issues.”.“The most important factor influencing why respondents file by paper instead of online is disinterest,” wrote researchers. .“Apathy is a barrier, 50% of likely switchers say they are simply not interested in switching. Therefore the agency will have to demonstrate the value of switching.”
