The deadline to file personal income taxes for most Canadians is on Thursday. For those having trouble affording the increased cost of living, any balance owing to the government is a bill they can’t afford. “Canada Revenue Agency (CRA) is very scary and can be very daunting. They have a lot of ability to collect these funds from you,” said Pamela Meger, a licensed insolvency trustee with MNP. “So, if you’re already sort of feeling that crunch of, ‘I can just get by’ — adding that Canada Revenue Agency (bill) can be that tipping point.” The latest MNP Consumer Debt Index, a quarterly survey, found many Saskatchewan and Manitoba residents are experiencing disruptions in their financial plans. Of the 2,000 Canadians sampled, 56 per cent reported experiencing financial whiplash and 73 per cent said rising prices for food and gas are causing immense strain. Ipsos, who compiled the information, says the poll is accurate to within plus or minus 2.7 percentage points. As the tax filing deadline looms, 12 per cent said they expect to owe taxes they’re unable to pay. Six per cent of respondents will delay paying, and another six per cent say they will need to borrow or go into debt to meet their obligations. “We do have a lot of people that get in trouble with Canada Revenue Agency. It’s difficult to get out. So sometimes people will be scared to ask for help, or they don’t realize we can help with Canada Revenue Agency,” Meger said. While the CRA has many ways to collect what’s owed, it encourages Canadians to file income taxes by Thursday’s deadline and avoid the inevitable. Sababa Hossain, a spokesperson for CRA, says there is a variety of free software and tools available, including on the CRA’s website. She says most Canadians can spend an hour or less working on their taxes. “These days, doing your taxes takes less time than watching a show,” she said. “There’s still plenty of time.” If taxes aren’t filed by Thursday, late penalties begin with a five per cent late-filing penalty. One per cent is added every additional month left incomplete, with interest added on top of that. Hossain stressed no matter the situation, the CRA can work with people on repayment options. “We’re not trying to cause any sort of hardship in people’s lives,” Hossain said. “What a payment arrangement looks like for different people can mean different things.” Meger said unlike previous economic hardships, many people surveyed are working harder to break even or avoid dipping into debt — but increasing costs of essential foods and gas are exacerbating issues. “What’s happening in our economy right now is no one’s really doing anything wrong. It’s just the debt you do have costs a bit more, and the cost of living is costing more,” Meger said. The MNP Consumer Debt Index report for Saskatchewan and Manitoba shows nearly three in five — or 57 per cent — say they feel they are working harder financially but not getting ahead, while 67 per cent say they are delaying major financial decisions because conditions feel unpredictable. Meger says these figures are encouraging as more people become aware and look for help to find a way out of insolvency. “That’s significant, because I think people were kind of used to having low interest rates and a pretty steady economy where I think people are really becoming aware that this is volatile. It is something we really haven’t seen in many years,” she said.
