The ordeal

Well, it’s tax binder day.

Yes, that annual event when all of the T5s, T4s, receipts and statements are mixed carefully with a new bottle of Lagavulin 16 Year Islay Single Malt Scotch to produce a binder ready for the accountant to process.

I don’t do my own taxes? Even after writing books on dealing with the CRA? And serving once as Canada’s federal Minister of National Revenue?

Not a chance. That would require at least a case of nectar.

If you’re been blessed with employment income, investment returns, a diversified managed portfolio, some interest, dividends, share options, plus having business, charitable or medical deductions or you unloaded some real estate – even a principal residence – in the past year, this is a daunting task. Even with tax prep software. Or an AI agent.

You can certainly prepare and file yourself if life is simple. But otherwise, the accountant is your best bud. And his/her fee is tax-deductible.

What do most people do?

Of the 32 million tax filers in Canada last year, just less than half were DIYers. They did their own tax returns with the CRA reporting 46% of all filers used the NETFILE service to send them in. The rest (almost 20 million returns) went through professionals – using the EFILE system. Weirdly just over a million people filed on paper.

By the way, Canadians love their tax software. Fully 85% of those who file on their own – sans a professional – used a program like TurboTax.

And why would they not have an accountant and risk paying the wrong amount, opening themselves up to reassessments, interest and penalties? Especially now as the Revenue Cops are mandated with chasing unpaid dues and squeezing every last drop out of the citizenry?

Half say their lives are simple. They don’t need help. Some say they can’t afford to pay a preparer – even one of the cheapo H&R Block storefront part-time casual labour experts. And the rest – apparently about a quarter of the do-it-yourselfs – claim to enjoy the process. (Sad. They must have a much larger scotch budget.)

The deadline for filing is, of course, Thursday April 30th for most people, at which time anything you owe is also due. For self-employed folks and their spouses or partners, docs have to be sent to the CRA by June 15th (although all taxes must be paid by the end of April).

People who work for themselves, or are retired fossils, are asked to pay their taxes quarterly. While that’s a good idea to avoid penalties (and interest) and a nasty NOA (Notice of Assessment) after you file annually, you don’t have to comply. Your choice.

Finally, as you reach for the hootch, reflect on what a great tool the TFSA is for avoiding so much of this T5 nastiness. All of the returns made inside that tax-free account – whether in the form of interest, dividends or capital gains – are untaxed. Forever.

These are now serious accounts, with a total contribution room of $109,000 since being created in 2009 (when the Conservatives took my TFSA suggestion, then kicked me out of the party for blogging). For a couple, it means well over $200,000 in room has been earned – for lusty ETFs and other assets.

But that’s just the start. Growth inside a TFSA expands the account’s size beyond the original contribution space. If a hundred grand in ETFs holding the S&P 500 becomes $150,000, for example, it can all be removed free of tax and spent buying your daughter a condo (not) – then in the next calendar year $150,000 can go back in – regardless of the contribution limit for that period.

If you carefully manage the tax-free vehicles the feds have given you – the TFSA, RESP, RRIF plus the RRSP and FHSA with deductible contributions – plus utilize the PR capital gains exemption on your house, a whack of tax can be avoided. And if an AI agent steals your employment income, well, the tax prep process gets even easier.

Good news: your money is not being spent on a war. Yet.

About the picture: “Our grandson wasn’t amused to receive his typical wake-up visit…three year old Echo forgot it’s spring break!” writes Barb, in teh Okanagan. ”  Garth, thank you for being a daily voice of reason in an increasingly chaotic world.”

To be in touch or send a picturme of yuor beast, email to ‘garth@garth.ca’.

Source: https://www.greaterfool.ca/2026/03/20/the-ordeal/