Federal government hoping to expand take up of working income tax benefit as program grows
Liberals to detail plans for $500 million expansion of Working Income Tax Benefit in budget
A tax benefit aimed at the working poor will be expanded in next week's federal budget, but the Liberals are also trying to make sure more people actually know it exists.
Canada Revenue Agency is rolling out a national program to draw awareness to the Working Income Tax Benefit to raise take-up rates beyond their traditional level of about 85 per cent.
An internal government study concluded those rates are linked in part to the fact people who work with tax preparers or who use computer software are prompted to claim the benefit, but those who file on paper must know on their own what to do.
So for the 2017 tax year, the CRA is launching a national version of a program they ran in New Brunswick to try to change the number of people who access the benefit.
The program involved inserting a flyer highlighting the benefit into paper tax packages and the government says claims may have risen 35 per cent as a result.
Making the benefit more easily accessible is one of several changes to the program observers hope to see next week when the Liberals detail plans for its $500 million expansion.