CRA's Paperless Push: A Health Equity Test for Canada?

OTTAWA, ON – December 11, 2025 – The Canada Revenue Agency (CRA) has announced a significant step in its digital transformation agenda: it will no longer automatically mail paper income tax packages to Canadians starting with the 2025 tax season. While the agency highlights that approximately 93% of taxpayers already file online, this seemingly administrative tweak raises profound questions about equity, access, and the hidden impact on community health across the nation.

For millions, filing a tax return is more than a civic duty; it is the essential gateway to a suite of federal and provincial benefits that are fundamental to their financial stability and, by extension, their health and well-being. From the Canada Child Benefit to the GST/HST credit and eligibility for the new Canadian Dental Care Plan, these supports are lifelines. By altering the process for the nearly three million Canadians who still rely on paper, the CRA's efficiency-driven policy risks inadvertently erecting new barriers for the very people who need these benefits the most.

The Widening Digital Divide

The CRA's decision is rooted in a reality where digital interaction is the norm for the majority. Online filing is faster, and services like Auto-fill my return and direct deposit offer undeniable convenience. However, this national statistic masks deep-seated regional and demographic disparities. For a significant minority, the "digital-first" approach is not an upgrade but a hurdle.

This includes many seniors, who may be less comfortable with technology, and individuals living in rural, remote, and Indigenous communities where reliable high-speed internet remains a promise rather than a reality. Statistics show that while over 91% of urban households have access to target broadband speeds, that number plummets in rural areas, sometimes to as low as 62%. For those on the wrong side of this digital divide, the instruction to simply "go online" to order a tax package is a non-starter.

"We see it every year. People come in with a shoebox of receipts, and they trust the paper form they've used for decades," explains a long-time volunteer at a community tax clinic in rural Ontario. "Telling them they now have to call a number and give their SIN to an automated system, or worse, find a computer and printer they don't have, is going to cause immense stress. Many will just give up."

This potential for "giving up" is where a tax administration issue becomes a public health concern. Government estimates suggest that nearly one in five Canadians earning under $20,000 annually do not file a return, already forfeiting billions in unclaimed benefits. The new process, which shifts the onus of obtaining a paper package entirely onto the individual, could easily swell the ranks of these non-filers, deepening poverty and exacerbating health inequities.

Navigating the New Hurdles

The changes extend beyond the delivery method. The CRA is also removing several "low usage" schedules from the streamlined paper package, requiring filers to identify and source them separately. While the agency states careful analysis was done to minimize impact, the list includes forms crucial for specific life stages and financial situations.

Among the removed forms are Schedule 3 for capital gains, Schedule 7 for RRSP contributions, and Schedule 11 for tuition and education amounts. Most notably, Schedule 6 for the Canada Workers Benefit (CWB)—a refundable tax credit designed to supplement the earnings of low-income workers—will also no longer be included. An individual working a minimum-wage job, a student paying for their education, or a senior making a small RRSP withdrawal now faces an extra layer of complexity. They must first recognize that they need a form that isn't in the basic package and then navigate the system to order it.

This procedural friction is not trivial. Each additional step is a potential point of failure, particularly for those with low literacy, language barriers, or cognitive disabilities. While the CRA's goal is to streamline the package for the "average" filer, the result is a more complicated process for those in non-standard, often more precarious, situations. The push for operational efficiency for the 93% risks creating a system that is less accessible and more error-prone for the remaining 7%, a group that disproportionately relies on the very benefits tax filing unlocks.

A Lifeline of Support?

To its credit, the CRA is not leaving paper filers entirely without options. The agency emphasizes that packages can be ordered by phone or printed from its website. It also continues to champion its free tax-filing assistance programs, which represent a critical piece of the social safety net.

The Community Volunteer Income Tax Program (CVITP), a long-standing partnership between the CRA and community organizations, offers free tax clinics for individuals with a modest income and a simple tax situation. Last year alone, these clinics helped over 857,000 people file their returns, accessing more than $2.35 billion in refunds and benefits. This program is an indispensable community-led solution that bridges the exact gaps created by the digital divide.

Furthermore, the CRA is expanding its "SimpleFile" service (formerly File My Return), an invitation-only program that allows eligible individuals to file their taxes in minutes over the phone or online. The agency aims to invite two million Canadians to use the service for the 2025 tax season. This automated, simplified approach holds immense promise for reaching those with the simplest tax situations who have historically struggled to file.

However, these support systems have limitations. The CVITP relies on the capacity and availability of local volunteers. The automated phone line for ordering forms requires a SIN and a degree of comfort with non-human interaction, and anyone who has faced long wait times calling the CRA's general inquiries line may be wary of relying on phone-based support. While SimpleFile is a powerful tool, it is not available to everyone.

Ultimately, the effectiveness of the CRA's digital transition will not be measured by its efficiency gains or cost savings. It will be measured by its ability to ensure that no one is left behind. As government services become increasingly digital, this policy shift serves as a crucial test case for Canada's commitment to inclusive design. Ensuring that every Canadian, regardless of their income, location, or digital literacy, can easily file their taxes is not just a matter of good administration—it is a fundamental component of building a healthier and more equitable society.