Richard Matern, director of research, Food Banks Canada
By now, Canadians are well into one of their most dreaded chores: filing their taxes. What makes it palatable for many is the potential tax return waiting for them on the other side.
This is especially true for Canadians who live beneath the poverty threshold, for whom every dollar counts. There are numerous federal and provincial financial supports available to them in the form of GST/HST credits, federal and provincial child benefits and more, that can significantly increase incomes for those on social assistance.
Problem is, those who don’t file taxes miss out on them. And the vulnerable populations these supports are supposed to help are often the least equipped to do what it takes to get them. This has created a structural barrier that takes a toll on people living in poverty. It’s one we must work together to fix.
It starts with education. According to Food Bank Canada’s Hunger Count 2018 report, in one month alone (March of that year), nearly 1.1 million people nationwide visited a food bank, the majority of whom receive social assistance or disability-related supports. As front-line workers well know, many of these folks aren’t even aware these tax incentives exist. Even if they do, they must then have the time, resources and determination to navigate the many administrative barriers that come with the tax-filing process, something people in precarious situations find particularly challenging.
People who are new to Canada, who live with physical or mental-health challenges, or who have lived their entire lives in the grip of poverty make up a significant portion of the Canadian population who are unlikely to file taxes, and as a result never benefit from the dollars that are waiting for them.
This is about more than getting a cheque from the government. Social-assistance rates have not significantly increased since the 1990s and for many households they offer grossly inadequate support in the face of today’s economic situation. This leaves many seeking the help of food banks, something we should strive to reduce. Unlocking tax-driven supports is key to this effort.
To its credit, the federal government is aware of this issue and has taken steps to help close the tax-filing gap and ensure vulnerable populations receive the benefits to which they are entitled. The Canada Revenue Agency works with local community organizations through the Community Volunteer Income Tax Program (CVITP), which provides support for volunteers to assist low income individuals prepare and submit their tax returns.
Non-profit and other charitable groups are essential partners of this program, as they can better reach vulnerable populations in a way that the federal government on its own cannot. The network of Food Banks Canada alone, comprising more than 300 food banks, either directly provides or refers people to services to help people file their taxes, free of charge.
One example of this is Saskatoon Food Bank & Learning Centre, which through the CVITP helped more than 7,000 people file over 4,800 tax returns last year, putting $19.2-million back into the hands of low-income individuals in Saskatoon.
That’s just one organization. Extending that level of support across the country, as part of a meaningful, focused strategy, could help permanently reduce the tax barrier facing those living in poverty.
While we continue to strive for an improved income-security system that will better integrate with provincial social-assistance programs and build on the basic income model, providing tax-filing support represents a relatively easy and important win.
Let’s seize this opportunity and make each April an opportunity, not a time of stress and hopelessness, but a time when we can make a difference in the lives of people who need it most.