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Through its website and daily newsletters, The Peak (a ZoomerMedia property) offers Canadians the news they need to understand business, tech, and other must-know stories.
In this dispatch, The Peak looks at a new CRA system that could automatically file your tax returns, why Airbnb is turning to private chefs to boost profits and how sports betting is taking a toll on personal finances.
Good news for Canadians who hate filing taxes: Your taxes may soon be filed for you. This summer, the Canada Revenue Agency (CRA) is testing a new system that would automatically file basic tax returns. This pilot could help dish out up to $1.6 billion in benefits during the 2025 tax season to the 10 per cent to 12 per cent of Canadians who don’t file their taxes. Many of these people are low-income Canadians who, despite not actually having to file if they have no taxable income or taxes owing, miss out on government benefits. For example, around 172,210 families miss out on the Canada child benefit, according to the parliamentary budget officer, which adds up to $675 million that is missed in benefits. The new system would become available to people who have uncomplicated taxes and can be done by phone, online, or by mail using the CRA’s SimpleFile service. It also promises to get you your refund faster — the process should take just 10 minutes, after which point your refund could be immediately available. So far, 2 million Canadians have been invited to join the pilot, and, if successful, the program could roll out nationwide. — Meera Raman
Like a popstar in their flop era, Airbnb is soft launching a new persona.
What happened: After projecting its slowest pace of growth since 2020, Airbnb is looking to expand its products and services to stoke demand and shift further into long-term stays.
- The number of bookings on the app badly missed analyst projections, with the company predicting even slower U.S. demand on the horizon.
- From Booking Holdings reporting softer demand to Air Canada seeing its profits cut in half year over year last quarter, the broader travel industry is feeling the pinch.
Why it matters: Would-be travellers are paring back, particularly on domestic voyages, not because of a lack of options, but because their credit cards need a breather. Desperation is driving innovation for Airbnb, which is hoping to win back demand with new features:
- A new co-hosting option that connects homeowners with property managers.
- A revamped version of its Experiences biz, offering guests tours and workshops.
- Deluxe guest services, potentially including private chefs, spas, and fridge stocking.
Bottom line: The post-COVID trend of “revenge travel” has fallen by the wayside. And while flashy new features and leaning into luxury experiences might help Airbnb attract a less cost-conscious clientele, it won’t make wider economic anxieties magically disappear. — Quinn Henderson
It may not be totally surprising that if you turn everyone’s phone into a casino they gamble (and lose) more, but now we have data that proves it.
Driving the news: Two new research papers found that legalized sports betting is associated with lower credit scores, more bankruptcies, and higher debt loads, particularly among young men and low-income households.
- One of the studies found that in areas where online betting is legal, average credit scores dropped by 1 per cent and the likelihood of filing for bankruptcy increased by 25 per cent to 30 per cent after four years of legalization.
- The second study found that legalization drove “sharp increases in sports betting” without reducing other forms of gambling, and was also associated with a drop in stock market investing.
Why it matters: The findings are strong evidence that legalized sports betting is contributing to financial hardship among at least some gamblers.
- The worst effects were concentrated in young, low-income men, both studies found.
Catch up: Canada legalized single-game sports betting in 2021 and allowed the provinces to regulate it, something all of them have done.
- Legalization received overwhelming support in the House of Commons from all parties, with its supporters arguing it would redirect proceeds of gambling from organized crime to the public coffers.
Bottom line: Governments might appreciate the added tax revenue that comes from legal gambling, but these studies show it comes at a cost. — Taylor Scollon
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