In early May, Heather Gilberds, a Carleton PhD candidate, had a nasty surprise when the Canada Revenue Agency (CRA) withdrew $17,000 from her bank account, money they said they were owed.
After a very public back and forth in the media, the CRA backed off and returned the money. This is not the first time, nor the last that the government agency will exercise this power.
What is most telling about this story is not the fact that the CRA withdrew the money, but that the public and Gilberds were shocked that they would do this without consulting her.
Many people, students in particular, find the tax system confusing and often surprised or angry when their tax returns are smaller than expected or they rack up unnecessary charges. It’s time for some student tax literacy.
Yet, there is the pertinent question of who should shoulder the blame and therefore come up with the solution. Does the responsibility to be tax literate fall on the student? Student unions like the Carleton University Students’ Association (CUSA) or the Graduate Students’ Association (GSA)? The university administration? The government?
The answer is all of them. This is a joint responsibility that requires the action of the whole university community in order to avoid another tax-astrophe.
While CUSA has its upcoming financial literacy day and the GSA hosts workshops every so often, what students need is a co-ordinated educational plan to make them more aware of their financial obligations—something that will only become more confusing as they graduate and start working.
Students should know how to file taxes, which parts of their income are taxable, and generally how to navigate the tax system.
As is the case of Gilberds, students who receive scholarships or provincial loans have to jump through extra hoops. Student tax literacy is a manageable problem with—if there’s enough co-ordination and effort—a simple solution.
