Unlocking the Potential of Income Tax Clinics

Transcription

1 Unlocking the Potential of Income Tax Clinics Simon Brascoupe, AFOA Canada Lorna Eastman, CFP, Lorna Eastman Financial Nene Kraneveldt, MA, Imagination FX Karen Martin, Regional Outreach Planning Officer, Assessment, Benefit, and Service Branch, Canada Revenue Agency

2 Agenda 1. Financial wellness 2. Increasing tax filing and accessing benefits 3. Financial wellness education 4. Community Volunteer Income Tax Program - CVITP

3 AFOA Canada Education and training programs Indigenous Financial Literacy and Wellness Community Capacity Building Workshops Aboriginal Financial Managers Certification Aboriginal Professional Administrators Certification Journal of Aboriginal Management

4 Prosper Canada As Canada s leading champion of financial empowerment, we work with government, business and community partners to develop and promote financial policies, programs and resources that transform lives and foster the prosperity of all Canadians. We help service systems and organizations in all sectors to build proven financial empowerment approaches into their businesses in ways that: Are sustainable Help them achieve their goals Tangibly increase the financial well-being of low-income people they serve.

5 Financial wellness The continuous process of balancing income, saving, investing and spending to achieve one s life goals (physical, emotional, mental and spiritual) over the life cycle, and to maintain a state of wellness for individuals, family and community.

6 Indigenous Financial Wellness Framework

7 An estimated 30-40% of First Nations individuals miss out on important income benefits because they don t tax file e.g. $ M in Canada Child Benefits

8 Opportunity: Boost access to income benefits Unaware of benefits Worried they might owe CRA money Complexity (tax system and forms) Low literacy/english language/numeracy No secure computer access Difficulty assembling paperwork Mistrust of government Lack of confidence.

9 Relationship Principles Partnership: Work collaboratively. Take the time to develop trust, safety, etc. Cultural safety: Provide education, support and access that is culturally relevant and safe Respectful: Build mutual respect, trust and understanding Knowledge-based: Two-eyed seeing approach uses both Indigenous and western knowledge in finding solutions

10 Main reasons for not tax filing Cost of fax filing Limited tax literacy and/or financial literacy bureaucratese Lack of/limited access to services, advice, and assistance Limited computer access Difficulty assembling documents and documentary requirements Source: CRA, The Experiences of Indigenous Communities with Tax Filing June 2017 Phoenix Strategic Perspectives CRA.

11 Community Volunteer Income Tax Program (CVITP) Community organizations host free tax preparation clinics Arrange for volunteers to prepare income tax and benefit returns For eligible individuals who have a modest income and a simple tax situation 11

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13 Increasing Tax Filing and Accessing Benefits Lorna Eastman

14 Research Volunteer Income Tax Clinics What other s are doing Benefits Barriers What to do? How to do? Where to Start?

15 Case Study Examples Young Adult $ 1,600 per year Single Mom with 2 kids $17,706 per year Mid career couple $13,614 per year Elder $ 17,304 per year

16 Meet Jennifer

17 The Learning Journey Connected with network of people across the country all doing great work Need for pre tax filing assistance Apply for Birth Certificates and Social Insurance #

18 The Learning Journey Need for post filing assistance application forms, RESP set up Attended clinic in Sandy Bay primarily applying for birth certificates Three 3 day events June, July, August Super Clinics Birth Certificates, Social Insurance# and Tax Filing

19 Lessons Learned 1. Canada Revenue Agency provides support for Volunteer Income Tax Clinics 1. More support required prior to tax filing 1. More support required after filing taxes

20 Connect Your Guide Provides background and How to First Step Increase Awareness and Buy-In Helps you understand How to Help and Where to Start

21 The Journey Ahead In discussion regarding Roll Out of Super Clinics Discussions re: setting up RESP accounts for BC Children in Care Access CLB for children up to $2,000 each Information Shared Manitoba Volunteer Tax Clinic Planning

22 Questions?

23 Financial Wellness Nene Kraneveldt

24 What is Financial Wellness?

25 Financial Wellness includes: Can provide for myself and / or family Having access to traditional foods and resources to sustain myself / family Having resources to handle emergencies / unexpected costs Being able to qualify for credit if needed

26 Financial Wellness includes: Balancing your needs with your wants Having a sense of purpose Participating in community decisions and the future of community

27 WIIFM What s in it for me? What s in for my family? What s in it for my community? What s in it for my Nation? What s in it for Indigenous People?

28 Creating the Handbook Fingerprints on the Handbook are those of people who want and need the information within the handbook The words on the pages were guided by our people for our people

29 Handbook Table of Contents 1. What is Financial Wellness? 2. History & Worldview 3. Life & Essential Skills 4. Goals 5. Budgeting 6. Getting Out of Debt 7. Retirement

30 Sharing Our Harvest Next Steps for Roll Out

31 Any Questions?

32 CVITP Karen Martin