Newfound comfort with digital transactions may ease the burden of a complicated tax year for Canadians

30% more Canadians expected to pay taxes online this year

TORONTO, April 22, 2021 /CNW/ -- Pandemic support benefits, new work-from-home deductions and a surge in gig workers are just a few of the reasons the 2020 tax season is a little more complicated. Add to that concerns about leaving home in the middle of lockdowns to meet the April 30 filing and payment deadline, and it's a good thing Canadians became more comfortable with digital transactions this year.

While the majority of taxes are filed electronically in Canada, a recent survey by digital tax payment service provider Payment Source found that less than 40 per cent of Canadians have paid their taxes online or through an app in the past. That's likely to change this year - with more than 70 per cent indicating they are interested in paying their 2020 taxes electronically. This builds on trends from Payments Canada that indicate 44 per cent of Canadians have changed their payments preferences to digital and contactless due to COVID-19 and nearly 50 per cent are using e-commerce platforms more often than pre-pandemic.

"We are seeing this trend towards digital play out on our PaySimply platform where we are experiencing enormous growth of online and in-app tax payments," said Albert Lang, Vice President, Cards and Payments at Payment Source. "The Canada Revenue Agency has already encouraged people to file their taxes digitally this year to avoid processing delays. As for the associated payments, digital transactions are obviously faster, but they are also safer in this environment. People are clearly trying to offset some of the delays and challenges associated with this complicated tax year by moving to digital."

The 2020 tax season is predicted to be particularly unique as Canadians and their tax preparers, like accountants, cope with a backlog of new developments that impact calculations. A surge in gig work has some Canadians struggling to understand their tax filing obligations, millions of consumers received emergency benefits on which they now owe taxes and those who had to work remotely can now claim new work-from-home deductions. There has been much speculation that the tax deadlines will be extended as a result, but the filing and payment due date remains April 30.

Payment Source's PaySimply payment volume has tripled since 2018. The PaySimply service enables users to pay several different types of taxes, from corporate income tax and payroll deductions, to CERB repayments, individual T1 taxes, benefit repayments and many others online or through our new mobile app and receive instant confirmation.

About the data
View the full survey results here The survey was conducted with 1,500 Canadians from April 14 to 17, 2021 by Abacus Data. A random sample of panelists were invited to complete the survey from a set of partner panels based on the Lucid exchange platform. These partners are typically double opt-in survey panels, blended to manage out potential skews in the data from a single source. The margin of error for a comparable probability-based random sample of the same size is +/- 2.53%, 19 times out of 20. The data were weighted according to census data to ensure that the sample matched Canada's population according to age, gender, educational attainment, and region.

About PaySimply
With no account registration required, taxpayers simply select their tax type, enter the payment details – which include tax account number and payment amount – select a payment method and complete their payments in a few minutes. Through the PaySimply app, users can scan their CRA remittance letters to create and manage multiple payment profiles for both business and individual taxes. App users can also set up payment reminders to keep track of future payments. Additionally the PaySimply app facilitates repeat payments by letting users select a saved credit card.

The PaySimply service is available for use by Canadian taxpayers at paysimply.ca. 
The PaySimply mobile app is available for download on the App Store and Google Play.

About Payment Source

Payment Source powers payment methods that unlock new value for Canadian businesses, government and the people they serve. Our payments platform and national retail network can reach every Canadian and offer more ways to pay and be paid. Recognized as one of Canada's Best Managed Companies three years running, Payment Source connects Canadians with new government payment methods through its PaySimply platform. For more information, visit paymentsource.ca

Media Contact: Geoff Renstrom, 208-871-9280, [email protected]

SOURCE Payment Source