The Canada Revenue Agency (CRA) recognizes the value of free tax clinics that help Canadians do their taxes so they can get the benefits and credits they are entitled to while knowing the costs of running these clinics can be a challenge for organizations that want to participate.
On Wednesday afternoon, the Honourable Anthony Rota, Member of Parliament for Nipissing-Timiskaming visited the Low Income People Involvement (L.I.P.I.) of Nipissing to announce a $2335 investment from Community Volunteer Income Tax Program (CVITP) to run their tax clinic in 2024.
“The work this community organization does is so important to many of the constituents in Nipissing-Timiskaming,” says Rota, “This grant will allow this organization to spend less time on paperwork and more time helping those in need.”
The Honourable Marie-Claude Bibeau, Minister of National Revenue, was on hand for the announcement and discussed the importance of this program for all Canadians.
Bibeau says, “Last year, over 750,000 Canadians were assisted by free tax clinics, amounting to over $2 billion in benefits, credits and refunds being redistributed to the population. With the help of almost 16,000 volunteers across the country, including many here in Nipissing-Timiskaming, these clinics play a key role in making sure that the most vulnerable Canadians have access to the programs and benefits they deserve.”
The goal of this funding is to make it easier for individuals, especially from at-risk populations, to access these important tax benefits and credits by enhancing the funding available to them. CVITP clinics are at the heart of the CRA’s efforts to ensure that Canadians can access the benefits and credits to which they are entitled.
Volunteers at free tax clinics complete tax returns for people with a modest income and a simple tax situation, so they can access important benefits and credits that help make life more affordable. This is money that many people rely on to cover rent, pay for childcare or buy food for their families.
The clinics are hosted by non-profits, charities or community groups in collaboration with the CRA through the CVITP.
Lana Mitchell, Executive Director for LIPI says “CVIT – the Community Volunteer Income Tax Program has operated within the LIPI organization since 2012. As of January 31, 2024, we have completed 28,731 tax returns. The program is managed by Volunteer Jim Parker who since 1988 has facilitated the filing of 47,697 returns in total. The financial assistance from the Federal Government with the provision of the tax filing software makes this community service possible.”
Before this funding, community organizations that ran tax clinics covered the costs, which increased as the clinics helped more and more Canadians complete their income tax and benefit returns.
Expenses include such things as office stationery, printers, document shredders and many other incidental expenses to support their dedicated volunteers.
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