Can you file multiple years of income taxes together in Canada? + MORE Dec 26th

Tax season is approaching. Soon, more than 30 million Canadians will be filing their tax returns. Most Canadians file their taxes every year but according to a paper from Carleton University, as many as 12% of Canadians don’t, and aside from missing out on tax refunds, this is costing many low income Canadian families access to tax-free benefits from federal and some provincial governments. In fact, everyone aged 18 and older should file a tax return—even if they have no income—to receive the federal GST/HST credit, access to the Canada Dental Benefit, the new Canada Dental Care Plan to be introduced in 2024 and in specific provinces, access to the Climate Action Incentive to offset the cost of carbon taxes at the pump.

“So even if [you’re an employee and] get multiple years behind, you may have lost out on some tax credits and some tax benefits, but you don’t owe the government a bunch of money,” says Andrew Wall, a Certified Professional Accountant and the managing partner at CPA4IT Professional Corporation…

As Canadians are painfully aware, Canada’s inflation has stubbornly persisted above the Bank of Canada’s (BoC) target rate of 2%. In response, the BoC has repeatedly raised the benchmark interest rate—which sets the pace for banks’ prime rates—since early 2022. While no one can predict with certainty where interest rates are going, the BoC seems in no hurry to reduce rates just yet, having kept the benchmark rate stable at 5% since July 2023.

As a result of these rate hikes, the interest rates available on guaranteed investment certificates (GICs) have risen as well—leading to renewed interest from savers and investors. In fact, over the past 12 months, the average one-year Canadian GIC rate has shot up from 2% to 4.90%. As a result of this move-up in rates, even market-linked GICs—which offer a lower guaranteed interest rate because of higher potential gains linked to the stock market—are offering a minimum guaranteed rate over 2%, as of mid-December 2023.

How high will GIC interest rates go?

The interest rates you pay on various types of debt, like a mortgage or a line of credit, depends mainly on the benchmark rate set by the BoC…