Taxpayer watchdog warns of Carney’s automatic tax filing program

Prime Minister Mark Carney’s plan to let the Canada Revenue Agency automatically file millions of Canadians’ tax returns is facing backlash from the Canadian Taxpayers Federation.

Source: Facebook

Prime Minister Mark Carney’s plan to let the Canada Revenue Agency automatically file millions of Canadians’ tax returns is facing backlash from the Canadian Taxpayers Federation, which says the month-long consultation preceding the rollout was a “sham” designed to rubber-stamp a power grab by bureaucrats.

The CRA’s consultation ran for only one month, from September 9 to October 9, ending just a day before Carney’s announcement on Friday.

The consultation sought online feedback from individuals and organizations about expanding “automatic tax filing” services.

The government says the program, starting in 2026, will help up to 5.5 million low-income Canadians receive benefits they’re missing, such as the GST/HST credit and Canada Child Benefit.

Critics, however, say Ottawa’s timeline shows the outcome was pre-determined.

“Carney plans to give CRA more power with automatic tax filing,” said Canadian Taxpayers Federation’s Federal Director Franco Terrazzano. “Trusting the taxman to do your return is like trusting your dog to protect your burger. CRA acting as both tax filer and tax collector is a serious conflict of interest.”

Terrazzano mocked the idea that meaningful input was possible within hours of the consultation closing. “There’s no way bureaucrats pulled an all-nighter reading through thousands of submissions before sending Carney out to make an announcement the next morning,” he said. “Asking Canadians for their opinion and then ignoring them isn’t a good look. This was a sham consultation.”

The federation argues the plan will give unprecedented control to the same agency responsible for collecting taxes. “The CRA can barely answer the phone, so Carney shouldn’t be giving those bureaucrats more busy work,” Terrazzano said. “The CRA is a bloated mess, and Carney should be cutting the cost of bureaucracy, not scheming up ways to give it more power over taxpayers.”

The government maintains that the system will help low-income Canadians access benefits automatically.

In his Friday announcement, Carney said the measure is part of a broader affordability plan alongside a permanent National School Food Program and renewed Canada Strong Pass travel discounts.

“Our budget will build a stronger Canada,” Carney said. “It will empower Canadians by helping you get ahead, bringing down your costs, and making your life more affordable.”

Finance Minister François-Philippe Champagne said automatic filing will ensure “no one is left behind,” but the Canadian Taxpayers Federation called the project a dangerous step toward what it dubbed “automatic taxation.”

“This is about control, not convenience,” Terrazzano said. “The CRA shouldn’t be both the referee and the player in Canada’s tax system.”