e-4564 (Taxation)

The Canada Revenue Agency (CRA) extends its thanks to the petitioners for expressing their views regarding taxation.

The CRA is committed to making sure Indigenous peoples receive the benefits and credits they are eligible for and that they are given complete, accurate, clear, and timely information. It is not the CRA’s intention to cause anyone emotional or financial hardship.

Please note that making the requested changes to tax information slips is a complex undertaking involving many stakeholders, including other government departments.

SimpleFile: Let Us Help You Get Your Benefits is a simplified paper T1 form that the CRA introduced in February 2021 to help Indigenous communities file their tax returns so that they are able to access the benefits they may be entitled to in a timely manner. The simplified form is available across Canada, and asks applicants if they are registered, or eligible to be registered, under the Indian Act; if they have any on-reserve exempt income; and for information about provincial benefits. As some Indigenous communities, including those in remote and northern Canada, face internet connectivity challenges, the simplified paper return ensures that they are able to file their tax returns in order to access benefit payments, including the Canada Child Benefit.

CRA continues to explore ways to simplify the reporting process for Indigenous Peoples. This includes examining amending slips and simplifying forms. CRA consults with internal and external stakeholders, such as other government departments, Indigenous and community organizations, and equity, diversity, and inclusion networks. CRA also collects feedback through client experience surveys, and from participants of the Community Volunteer Income Tax Program (CVITP).

There are simplified tax filing measures for individuals with tax-exempt incomes including the form SimpleFile: Let Us Help You Get Your Benefits and Form T90 Income Exempt from Tax under the Indian Act. These forms make it easier to report various tax-exempt incomes including tax-exempt CPP benefits and RRIFs, respectfully.

“SimpleFile” allows individuals to check off boxes corresponding to their types of income and situation, including tax-exempt CPP. Based on the provided information, CRA records the individual’s tax slips in appropriate, separate fields.

For individuals using the regular T1 form, they can complete and join the T90 form, which enables them to include their exempt income, including tax-exempt CPP, RRIF and RRSP.

Individuals who are not able to file their own taxes can also access the CVITP. CVITP volunteers can report various types of tax-exempt incomes, including CPP and retirement pensions, and file their clients’ tax returns electronically.